Gold prices crept up on Tuesday from multi-week lows after US central bank governors sought to comfort investors by highlighting the possibility of a September interest rate reduction.
Spot gold was up 0.2% to $2,411.97 per ounce. Gold futures increased 0.3% to $2,452.60.
Bullion had its worst day in over two weeks the previous session, caught in the wake of a global, broader market sell-off on rising economic fears.
U.S. central bank policymakers pushed back on Monday against the assumption that weaker-than-expected July job statistics meant the economy is in a recession, but they also warned that the Federal Reserve will need to decrease interest rates to avoid such a scenario.
Fed San Francisco President Mary Daly stated that she was willing to decrease interest rates if required, and that policy should be proactive.
According to CME FedWatch, traders are pricing in a 50-basis-point decrease at the Fed’s September meeting, with another cut expected in December.
Lower interest rates put pressure on the currency and bond yields, increasing the attraction of non-yielding gold.
Markets will be watching for statistics on the US trade deficit later in the day, as well as first unemployment claims on Thursday.
Data released on Monday revealed that U.S. services sector activity rebounded from a four-year low in July, with a comeback in new orders and the first gain in employment in six months.
Spot silver rose 0.2% to $27.33 per ounce, while platinum was over 1% higher at $914.90.
Palladium climbed 0.8% to $856.83, after reaching its lowest prices since August 2018.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.