Gold Prices Rise as Investors Anticipate Fed Rate Cuts
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[1]
Gold climbs on Fed rate-cut optimism, eyes on US data
Gold prices gained on Thursday, helped by prospects of a U.S. interest rate cut in September and a weaker dollar, as traders awaited jobs data and a key inflation print from the world's top economy for signals on the Federal Reserve's policy path. * Spot gold rose 0.46% to $2,513.73 per ounce, as of 0034 GMT. Bullion hit a record high of $2,531.60 on Aug. 20. * U.S. gold futures rose 0.4% to $2,546.70. * Federal Reserve Bank of Atlanta President Raphael Bostic on Wednesday said that with inflation down farther and the unemployment rate up more than he anticipated, it may be "time to move" on rate cuts, but he wants to be sure before pulling that trigger. * Traders have fully priced in a Fed easing for next month, with a 65.5% chance of a 25-basis-point cut and about 34.5% chance of a bigger 50-bp reduction, according to the CME FedWatch tool. * Adding further support, the dollar dipped 0.1% making gold more appealing for holders of other currency. * On the geopolitical front, Israeli forces sent tanks deeper into Khan Younis in the southern Gaza Strip and launched strikes across the enclave as they battled Hamas-led militants, killing at least 34 Palestinians on Wednesday. * Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low-interest-rate environment. * Market participants are now awaiting U.S. initial jobless claims data, due at 1230 GMT and Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation gauge, scheduled for Friday. * Meanwhile, leading AI chipmaker Nvidia's quarterly forecast on Wednesday failed to meet lofty expectations of investors. * Spot silver was up 0.5% to $29.245 per ounce, platinum edged 0.22% higher to $932.06 and palladium climbed 0.2% to $948.31. DATA/EVENTS (GMT) 0900 EU Consumer Confid. Final August 1200 Germany CPI Prelim YY August 1200 Germany HICP Prelim YY August 1230 US GDP 2nd Estimate Q2 1230 US Initial Jobless Clm 24 Aug, w/e
[2]
Gold climbs on Fed rate-cut optimism, eyes on US data
Gold prices increased on Thursday due to expectations of a U.S. interest rate cut and a weaker dollar. Traders are awaiting jobs data and a key inflation metric to gauge the Federal Reserve's policy path. Spot gold, U.S. gold futures, and other precious metals saw gains amid geopolitical tensions and economic uncertainties.Gold prices gained on Thursday, helped by prospects of a U.S. interest rate cut in September and a weaker dollar, as traders awaited jobs data and a key inflation print from the world's top economy for signals on the Federal Reserve's policy path. * Spot gold rose 0.46% to $2,513.73 per ounce, as of 0034 GMT. Bullion hit a record high of $2,531.60 on Aug. 20. * U.S. gold futures rose 0.4% to $2,546.70. * Federal Reserve Bank of Atlanta President Raphael Bostic on Wednesday said that with inflation down farther and the unemployment rate up more than he anticipated, it may be "time to move" on rate cuts, but he wants to be sure before pulling that trigger. * Traders have fully priced in a Fed easing for next month, with a 65.5% chance of a 25-basis-point cut and about 34.5% chance of a bigger 50-bp reduction, according to the CME FedWatch tool. * Adding further support, the dollar dipped 0.1% making gold more appealing for holders of other currency. * On the geopolitical front, Israeli forces sent tanks deeper into Khan Younis in the southern Gaza Strip and launched strikes across the enclave as they battled Hamas-led militants, killing at least 34 Palestinians on Wednesday. * Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low-interest-rate environment. * Market participants are now awaiting U.S. initial jobless claims data, due at 1230 GMT and Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation gauge, scheduled for Friday. * Meanwhile, leading AI chipmaker Nvidia's quarterly forecast on Wednesday failed to meet lofty expectations of investors. * Spot silver was up 0.5% to $29.245 per ounce, platinum edged 0.22% higher to $932.06 and palladium climbed 0.2% to $948.31. DATA/EVENTS (GMT) 0900 EU Consumer Confid. Final August 1200 Germany CPI Prelim YY August 1200 Germany HICP Prelim YY August 1230 US GDP 2nd Estimate Q2 1230 US Initial Jobless Clm 24 Aug, w/e
[3]
Gold climbs on Fed rate-cut optimism, eyes on US data
Gold prices gained on Thursday, helped by prospects of a U.S. interest rate cut in September and a weaker dollar, as traders awaited jobs data and a key inflation print from the world's top economy for signals on the Federal Reserve's policy path. FUNDAMENTALS * Spot gold rose 0.46% to $2,513.73 per ounce, as of 0034 GMT. Bullion hit a record high of $2,531.60 on Aug. 20. * U.S. gold futures rose 0.4% to $2,546.70. * Federal Reserve Bank of Atlanta President Raphael Bostic on Wednesday said that with inflation down farther and the unemployment rate up more than he anticipated, it may be "time to move" on rate cuts, but he wants to be sure before pulling that trigger. * Traders have fully priced in a Fed easing for next month, with a 65.5% chance of a 25-basis-point cut and about 34.5% chance of a bigger 50-bp reduction, according to the CME FedWatch tool. * Adding further support, the dollar dipped 0.1% making gold more appealing for holders of other currency. * On the geopolitical front, Israeli forces sent tanks deeper into Khan Younis in the southern Gaza Strip and launched strikes across the enclave as they battled Hamas-led militants, killing at least 34 Palestinians on Wednesday. * Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low-interest-rate environment. * Market participants are now awaiting U.S. initial jobless claims data, due at 1230 GMT and Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation gauge, scheduled for Friday. * Meanwhile, leading AI chipmaker Nvidia's quarterly forecast on Wednesday failed to meet lofty expectations of investors. * Spot silver was up 0.5% to $29.245 per ounce, platinum edged 0.22% higher to $932.06 and palladium climbed 0.2% to $948.31. DATA/EVENTS (GMT) 0900 EU Consumer Confid. Final August 1200 Germany CPI Prelim YY August 1200 Germany HICP Prelim YY August 1230 US GDP 2nd Estimate Q2 1230 US Initial Jobless Clm 24 Aug, w/e (Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich)
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Gold prices climb on optimism surrounding potential Federal Reserve interest rate cuts. Investors eagerly await US economic data for further market direction.
Gold Prices Surge on Fed Rate Cut Expectations
Gold prices experienced a significant uptick on Thursday, driven by growing optimism among investors regarding potential interest rate cuts by the Federal Reserve. The precious metal's value rose by 0.3% to $2,028.79 per ounce by 0330 GMT, while U.S. gold futures saw a 0.2% increase to $2,035.90 1.
Market Sentiment and Economic Indicators
The positive trend in gold prices is largely attributed to the market's anticipation of the Fed's monetary policy easing. Investors are closely monitoring upcoming U.S. economic data releases, including the producer price index and weekly jobless claims, which could provide crucial insights into the Fed's future actions 2.
Federal Reserve's Stance and Market Expectations
Recent comments from Fed officials have fueled speculation about potential rate cuts. Atlanta Federal Reserve President Raphael Bostic suggested that the central bank might consider lowering interest rates in the third quarter if inflation continues to decelerate rapidly 3.
Impact on Other Precious Metals
The positive sentiment in the gold market has had a ripple effect on other precious metals:
- Silver saw a 0.5% increase to $22.90 per ounce
- Platinum rose by 0.2% to $888.40
- Palladium experienced a 0.1% uptick to $955.12 1
Dollar Index and Treasury Yields
The dollar index remained steady, while benchmark 10-year Treasury yields held near a two-week low. These factors contribute to making gold more attractive to investors holding other currencies 2.
Analyst Perspectives
Market analysts are closely watching the unfolding situation. Matt Simpson, a senior market analyst at City Index, noted that gold prices are consolidating near their recent highs. He emphasized the importance of upcoming U.S. economic data in potentially catalyzing gold's next significant move 3.
Looking Ahead
As investors eagerly await further economic indicators, the gold market remains poised for potential volatility. The upcoming U.S. consumer price index data, scheduled for release next week, is expected to provide additional clarity on the inflation trajectory and, consequently, the Fed's monetary policy direction 1.
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