Bundesbank: the threshold for Powell's speech to exceed expectations is high, and the market has already priced in a Fed rate cut of about 100 basis points by the end of the year

Analysts at Commerzbank said in a report that gold prices hit a new record of $2,531.6 per ounce on Tuesday, then fell sharply on Thursday, and whether it will rise further in the short term will probably depend on Powell's speech. If Powell hints at increased interest rate cuts, then gold could be pushed to new heights. Given that the market has already priced in a Fed rate cut of around 100 basis points by the end of 2024, the threshold for a positive surprise is high, says Deutsche Bank. However, if market expectations fall short, gold could come under pressure again.