Gold prices remain steady

8 May 2024 , 09:45 AM

On Wednesday, the price of gold remained stable as investors waited for new signals from US Federal Reserve officials regarding the timing of future interest rate cuts.

Spot gold continued to trade at $2,314.29 an ounce. Gold futures dropped to $2,322.90, down 0.1%.

The appeal of owning non-yielding gold increases with lower rates. Based on CME’s FedWatch Tool, markets are presently pricing in a 65% possibility of a U.S. rate cut in September.

Meanwhile, the U.S. central bank will need to keep borrowing costs constant for a “extended period,” and probably the entire year, according to Minneapolis Fed President Neel Kashkari, who made this statement on Tuesday. Stalled inflation, which has been helped in part by the strength of the housing market.

According to official figures released on Tuesday, the Chinese central bank increased its holdings of bullion by 60,000 troy ounces in April, bringing the total amount of purchases made in a row to eighteen months.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, saw a 0.21% decline in its holdings on Tuesday, from 832.19 tonnes on Monday to 830.47 tonnes.

Israeli forces took control of the main Rafah border crossing on Tuesday, but the U.S. stated that talks on a Gaza truce should be able to bridge the divide between Israel and Hamas.

According to a study, borrowing in developing nations, the US, and Japan drove global debt to a new high of $315 trillion in the first quarter of this year, restarting a key measure of global indebtedness.

Spot silver decreased by 0.1% to $27.25 an ounce, while palladium increased by 0.4% to $974.59 and platinum increased by 0.5% to $981.10.

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