Disliked{quote} I just checked out that on every rate cut, gold fell. I am not an economy expert, what could be the reason for that?Ignored
For instance, the first interest rate cut by 0.25 to 2.25% in July was mainly because of Trumph's influence on FOMC. The statement from FOMC was hawkish means there was no data to show economic slowdown. Gold was increases from 1427 to 1434 and later it was dropped heavily to 1400. On second day Trump announced duty on Chinese imports and Gold went again from 1400 to 1440 but thats different story.
On second instance the rate cut from 2.25 to 2.00 where statement was coupled with mute inflation problem , voting was differed within FOMC, so it was more mixed. I considered it Hawkish as it was stressed on strong economy. It affected the Gold in same way as previous . First dropped from 1508 to 1487 and recovered in next two days.
This time, there is a clear data in front of FOMC, weak PMIs, Mute inflation, and moderate NFP. I think its sufficient for FOMC to come up with Dovish statement to prove their action of reducing interest rate to 1.75% However, if it will say that this is the last rate cut, market will will quickly react in other way.
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