Gold takes a breather after hitting record highs

5 Apr 2024 , 10:34 AM

Following their historic highs in the previous session due to anticipation of lower U.S. interest rates this year, gold prices paused on Friday while traders awaited additional signals from a crucial employment data that was expected later in the day.

Spot gold was down 0.2% at $2,284.84 per ounce, following a record-breaking high of $2,305.04 on Thursday. Bullion, up 2.3% so far this week, was expected to rise for a third straight week.

American gold futures decreased by 0.2% to $2,303.80 an ounce.

Powell restated that considering the strength of the economy and the recent high inflation readings, the U.S. central bank has time to carefully consider its first rate cut.

Holding bullion has a lower opportunity cost when interest rates are lower.

According to data, as the state of the labour market steadily improves, the number of Americans filing new claims for unemployment benefits rose last week more than anticipated.

In order to gain additional insight into the timing of the Fed's first rate cut, investors' attention will now turn to the U.S. March non-farm payrolls data, which is scheduled for release at 12:30 GMT.

In the meantime, record levels of unwrought gold helped exports surpass rising imports in February, resulting in a larger-than-expected trade surplus of C$1.39 billion ($1.03 billion) for Canada, according to figures released on Thursday.

In response to growing prices, consumers' demand for gold products declined in March, causing Perth Mint's sales of gold products to reach their lowest point in almost five years.

Spot silver dropped 1% to $26.69 an ounce, palladium dropped 0.7% to $1,013.67, while platinum increased by 0.1% to $926.36.

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