Analyst: Gold is boosted by the expectation of Fed rate cuts, investors still have opportunities to buy on dips in the future

News on August 20, Asian metal and mining analysts said that after an eye-catching first half of the year, traditional driving factors for gold have regained dominance. In the first half of the year, the inverse relationship between gold prices and the dollar and real yields was broken, largely thanks to strong buying from central banks and robust demand from Asian buyers. Gold has been a major beneficiary of this week's dollar decline, with all eyes focused on Federal Reserve Chairman Powell's speech in Jackson Hole on Friday. People are increasingly optimistic that he will lay the groundwork for a significant 50 basis point rate cut. This suggests that Western investors are now waiting for opportunities. As positions are far from saturated and there is plenty of room for ETF purchases, there is ample firepower waiting to be deployed. Considering all these potentials, starting now, investors should watch out for opportunities to increase exposure when prices fall.