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Gold rises on hopes of Fed interest rate cut

Federal Reserve Outlook: Gold rose above $2,390 per ounce on Monday, extending gains from the previous session, driven by hopes for rate cuts from the Federal Reserve.

Last week, the US June PCE reading, the Fed’s favored inflation gauge, met forecasts, but the core rate increased by 0.2%, slightly above the expected 0.1%.

Nevertheless, expectations for rate cuts remained intact, with markets fully pricing in a reduction at the September meeting and anticipating two additional cuts by the end of the year.

Meanwhile, rising geopolitical tensions in the Middle East also supported safe-haven assets like gold, following Israel’s pledge for strong retaliation against Hezbollah.

Israel accused the Iran-backed group of a weekend strike that resulted in the deaths of 12 people.

However, Hezbollah “firmly denies” involvement in the strike.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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