In press statements, Abdel Wahab explained that the financial markets' immediate reaction was muted because the cut was largely anticipated and already priced in by investors, leading to a limited short-term impact on the dollar, gold, and stock indices.
He added that Fed Chair Jerome Powell’s comments, which
stressed that another rate cut in December was "not a done deal,"
contributed to the dollar's stability and prevented pressure on its exchange
rate by tempering expectations for further monetary easing.
Abdel Wahab affirmed that the US economy faces a dual risk:
potential inflationary pressures from trade policies and tariffs, alongside a
relative decline in labor market performance. This dynamic compels Fed
policymakers to adopt a more cautious approach to future decisions.
The analyst noted that global gold prices retreated after
briefly surpassing the $4,000 per ounce mark earlier this week, trimming gains
under the influence of a rising dollar and bond yields. He clarified that rate
cuts typically support gold prices in the medium to long term, given its status
as a safe haven during economic slowdowns.
He stated that markets are currently undergoing a repositioning
phase. Some liquidity is shifting toward stocks following positive signals from
US corporate earnings, while gold maintains its appeal as a hedge against
future volatility.
Dr. Abdel Wahab concluded by asserting that gold prices could witness a historic rise, potentially exceeding $6,000 per ounce in 2026, if the global rate-cutting cycle persists and geopolitical tensions intensify. He believes this scenario would solidify gold as one of the most prominent tools for hedging and safe investment in the near future.