Return of $2k gold requires imminent end to Fed rate hikes

Spot gold is easing away from a two-month high after the latest US jobless claims print continue to point to a resilient US labour market that could underpin inflationary pressures.

Still, the precious metal this week did carve its way back closer to the psychological $2k mark and remains on course for a third weekly gain, its longest such winning streak since March.

Bullion bulls have leapt in July on hopes that the Fed’s next rate hike will be the last in this cycle.

If the Fed lends credence to market expectations for no further rate hikes after this month, that may help bullion bulls reclaim the $2k handle.

However, if the Fed pours cold water on the notion that its rate hikes are coming to an end, that could prompt bullion to unwind some of its recent gains and falter back into the mid-$1900s.