Gold Holds Firm Amid Global Turmoil

3 Oct 2024 , 10:39 AM

Gold remained stable on Thursday, as traders focused on developments in the Middle East crisis and critical US economic data that could provide indications about rate reduction later this year.

According to the ADP National Employment report released on Wednesday, U.S. private payrolls climbed more than predicted in September, providing another indication that labour market conditions were not deteriorating.

Spot gold was unchanged at $2,659.05 per ounce. Gold futures increased 0.4% to $2,679.50.

Markets now expect a 35% possibility of another 50-basis-point decrease at the November meeting, down from nearly 53% on Friday, according to CME’s FedWatch tool.

Lower interest rates lower the opportunity cost of owning gold, which is widely regarded as a secure asset during economic and political upheaval.

Israel struck central Beirut early Thursday, killing at least six people, following its worst day on the Lebanese front in a year of combat with Iran-backed militant group Hezbollah.

Spot silver declined 0.3% to $31.76 per ounce, while platinum rose 0.3% to $1,005.65, and palladium edged up 0.1% to $1,016.25.

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