Gold prices increase marginally

10 May 2024 , 05:25 PM

Due to traders’ increased predictions on a Federal Reserve interest rate cut later this year following recent economic data, gold prices increased slightly on Friday and were expected to see a weekly gain.

Spot gold was up 0.1% at $2,347.98 per ounce. The price of gold has increased by 2% this week. Gold futures increased by 0.6% to $2,354.10.

Data released on Thursday revealed that more Americans than anticipated filed new claims for unemployment benefits last week, providing another proof that the labor market was gradually cooling.

According to the financial markets, the Fed will begin its easing cycle in September. Having gold has a lower opportunity cost when interest rates are lower.

Now, attention is focused on the consumer confidence report from the University of Michigan at 1400 GMT and the consumer price index data that is expected next week.

San Francisco Fed President Mary Daly stated on Thursday that there is “considerable” uncertainty over the direction of U.S. inflation in the upcoming months, but she also expressed confidence that price pressures are still abating.

In other news, a senior Israeli official declared late on Thursday that Israel would carry out its operation in Rafah and other areas of the Gaza Strip as scheduled and that the most recent round of indirect talks to resolve hostilities in Gaza have concluded in Cairo.

Spot silver was on track to have its best week in five, despite a 0.1% decline to $28.31 per ounce.

Palladium increased by 0.1% to $968.25, while platinum firmed by 0.8% to $985.40. Weekly gains were scheduled for both metals.

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