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Gold Gains Continue on Fed Cut Expectations
Bloomberg Televisionยท2025-09-15 14:41

Gold Market Outlook - Gold has experienced a stunning run, attracting attention [1] - A downside correction risk exists due to gold's volatility [2] - The US Federal Reserve's easing path and steady rates from the European Central Bank are key drivers [2] - Broader debasement of trade may support gold prices [3] US Dollar and Economic Factors - Tariffs impact financial flows, affecting the "exorbitant privilege" of the US [4][5] - This can lead to higher borrowing costs in the US and pressure on the Fed to lower rates [5] - The dollar index is down about 10% year to date [8] - A greater fragmentation of the global liquidity machinery is foreseen, potentially weakening the dollar [12][13] Investment Strategies - Gold historically performs well in an easing environment and during stock market corrections [7] - Diversification into gold is increasing [7] - Gold miners are more speculative investments compared to physical gold ETFs [14]