Commodities
Gold Prices Seen Declining Short-Term Amid Fed Rate Hike Expectations
Gold prices have retreated from their recent peak of $4,718 on August 25 to test an intraday low of $4,340.60 before recovering. The October 2026 Comex contract price as of September 1 is $4,367.90.
CPM believes the sell-off in gold over the past two days is a short-term reaction to last Friday's Federal Reserve Board Chairman's speech and may persist for another couple of days before resuming its upward trajectory.
The firm also notes that rising expectations of interest rate hikes due to high inflation levels could weigh on gold prices, but this effect may be offset by global financial, economic, and political problems.