Gold prices marginally up today

7 May 2024 , 12:28 PM

Tuesday saw an increase in gold prices for a second session as expectations that the Federal Reserve would lower interest rates later this year were strengthened after US non-farm jobs report for April.

Spot gold was up 0.2% at $2,327.11 an ounce. Gold futures increased 0.2% to $2,336.20.

According to CME’s FedWatch Tool, traders are pricing in a 64% possibility of a September rate drop by the Federal Reserve. The appeal of holding non-yielding bullion is increased by lower rates.

As per the data released on Friday, the United States’ job growth slowed down in April more than anticipated, and annual salary growth dropped below 4.0% for the first time in almost three years.

John Williams, the president of the Federal Reserve Bank of New York, stated on Monday that the American central bank will eventually cut its interest rate objective.

Investors kept a careful eye on the most recent developments in the situation in the Middle East. On Monday, the militant Palestinian group Hamas accepted a proposal from mediators for a truce in Gaza; however, Israel declared that the terms did not satisfy its expectations and proceeded with strikes in Rafah, intending to continue talks towards a compromise.

The largest exchange-traded fund backed by gold in the world, SPDR Gold Trust, reported that its holdings increased by 0.21% to 832.19 tonnes on Monday from 830.47 tonnes on Friday.

Spot silver decreased by 0.1% to $27.44 an ounce, palladium increased by 0.4% to $981.34, and platinum increased by 0.5% to $958.90.

China’s services activity expansion slowed somewhat on Monday, according to a private sector poll, but new order growth quickened and business sentiment increased significantly.

For feedback and suggestions, write to us at [e-mail]