Gold Sharpens Decline To Five-Week Trough Before Powell's Remarks

Chicago Fed President Goolsbee cautioned that recent inflation data doesn’t yet reflect potential tariff impacts, while Deputy Governor Jefferson noted progress toward the 2% target but highlighted new uncertainties from trade measures. Rate expectations remain muted:

8% chance of June rate cut
40% probability priced in for July
Markets anticipate 50bps total cuts in 2024, likely beginning September

Investor Sentiment

SPDR Gold Trust holdings held steady at 936.51 tons, maintaining their lowest level since April 8, reflecting continued caution among institutional investors.

Outlook

With Powell’s remarks and key U.S. data pending, gold traders remain focused on the Fed’s policy signals and whether the dollar’s retreat can offset diminishing safe-haven flows. The metal’s near-term direction may hinge on whether $3,100 support holds.

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