According to the Federal Reserve’s latest Beige Book report, economic activity has increased slightly since the beginning of July. Ten of the twelve Fed districts reported slight to moderate growth in economic activity; two districts reported no change. Overall, consumer spending increased slightly; the report indicates that consumers have become more price-sensitive, and high-end consumer spending has also been strong. The overall outlook for the coming months is optimistic, but sentiment varies across industries. Contacts interviewed indicated significant uncertainty regarding the impact of rising energy prices, policy, and international conflicts. In terms of prices, compared to the previous reporting period, the rate of price increases remained unchanged in eight districts, decreased in three districts, and increased in one district.

This Beige Book report is likely to increase investor expectations that the Fed needs to raise interest rates and has the resources to do so. Investors’ risk appetite is unlikely to rise sharply, which should have a dampening effect on buying gold at high levels.

Gold prices are likely to fluctuate between $4,333 and $4,438 in the short term. Pay close attention to potential entry opportunities at the higher end of this range. There is room for short-term pullbacks, with $4,458 serving as a key defensive level. Please manage your risk accordingly.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for reference only and do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com