Key Highlight: The Federal Reserve, Trump’s action on both India and Friday’s Labor Data
The Federal Reserve Daly welcomed more than two rate cuts despite being uncertain about whether the next move would be in September. She projects that the effect of tariffs won’t be persistent and can’t afford to “wait forever,” especially when further weakness in labor market conditions could possibly drag down economic growth.
A signal for a quicker rate cut → slightly positive for gold prices.
The other two main stories of today would revolve around President Donald Trump about:
India: After a long period of intense pressure to end the Russia-Ukraine conflicts through imposing secondary sanctions on whoever purchases Russian oil, would face the same consequences, India still went over this threat and continued this purchase. Trump is frustrated and declared he would have more substantial tariffs, albeit the exact number has not been disclosed yet. Although this is a threat again, if he were to officially announce that he will raise taxes further, it could push the price of gold higher for a while.
Trump’s criticism of Labor’s data: Trump believes Friday’s labor data—nonfarm payroll, unemployment rate, and average hourly earnings—were rigged due to multiple revisions subsequently being made. Well, in fact, this revision has entirely changed the whole idea of recent labor market conditions and made people question whether the US labor market is in a very bad position or what. In fact, He called this move a fake political number.
Causing uncertainty → positive for gold prices.
