Gold Holds Steady Amid US Interest Rates Uncertainty

1 Oct 2024 , 09:43 AM

The gold price maintained steady on Tuesday, following a nearly 1% drop the previous session, as investors anticipated impending US data for insights into likely interest rate cuts this year.

Spot gold remained constant at $2,635.89 per ounce. On Thursday, bullion reached a record high of $2,685.42. Gold futures fell 0.1% to $2,657.50.

Federal Reserve Chair Jerome Powell said on Monday that he expects two more interest rate reduction this year, totalling 50 basis points, “if the economy performs as expected,” but the Fed could cut quicker or slower if necessary.

On Monday, Chicago Federal Reserve President Austan Goolsbee maintained his support for significant interest rate decreases based on current economic conditions and projected trends. On the geopolitical level, Israel’s predicted ground invasion of Lebanon began early Tuesday, with its military reporting “limited” attacks on Hezbollah targets near the border.

The market will be looking for more signals from U.S. job openings data later today, as well as comments from various Fed officials.

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