Daily Digest Market Movers: Gold price loses traction, potential downside seems limited

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  • Hamas rejects fresh Israeli conditions in ceasefire talks in Egypt and insists that Israel be bound by the terms of a proposal laid out by US President Joe Biden and the UN Security Council, per local news agency Aljazeera. 
  • Federal Reserve (Fed) Bank of San Francisco President Mary Daly said that it’s appropriate for the Fed to begin cutting interest rates, adding that she doesn’t want to keep making policy tighter as inflation comes down. 
  • Richmond Fed President Thomas Barkin noted that he will take a 'test and learn' approach to rate cuts. 
  • Fed Chair Powell said on Friday at the Kansas City Fed's annual economic symposium in Jackson Hole, "The time has come for policy to adjust.”  Powell further stated that he was confident inflation was on its way towards the Fed’s 2% target.
  • The US Durable Goods Orders jumped to 9.9% MoM in July from a -6.9% contraction in June, stronger than the 4% increase expected. This figure registered the most significant gain since May 2020.
  • According to the CME FedWatch Tool, the markets have fully priced in a 25 basis points (bps) rate cut, while the possibility of a deeper rate cut stands at 30%, down from 36.5% last Friday.

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