Gold Holds Steady Amidst US Economic Data Release

23 Jul 2024 , 10:09 AM

Tuesday’s gold prices remained stable as investors braced themselves for this week’s U.S. economic data, which would provide insight into the timing of the Federal Reserve’s interest rate reduction.

Spot gold held steady at $2,398.29 an ounce, following a session in which it hit a low of more than a week earlier. US gold futures increased by 0.1% to $2,397.70.

On Thursday, traders will be watching the GDP report for the second quarter, and on Friday, they will be examining the personal consumption expenditures (PCE) data for June.

On July 30 and 31, the Federal Open Market Committee (FOMC) will have a two-day policy meeting. A 25 basis point rate drop by September and two reductions by year’s end have been widely priced in by the markets.

The opportunity cost of storing bullion is decreased by lower rates.

Due to recent price spikes, Chinese demand for gold is currently cyclically soft; nonetheless, central banks in emerging markets, including China, are expected to keep buying gold on a regular basis, whether or not they announce their purchases, according to Goldman Sachs.

China shocked markets on Monday by lowering key short- and long-term interest rates, marking the first significant change since last August and a sign of the country’s intention to accelerate economic growth in the second-biggest economy in the world.

In other political news, U.S. Vice President Kamala Harris roused supporters on Monday with her debut campaign speech, promising to take on Republican nominee Donald Trump like the courtroom prosecutor she once was. Harris is trying to gain Democratic support for her unexpected presidential bid.

Spot silver dropped 0.5% to $29.06 an ounce, palladium dropped 0.1% to $907.25, and platinum firmed 0.1% at $948.13.

Anglo American Platinum (Amplats), based in South Africa, announced on Monday that it had trimmed over 3,700 positions in order to save costs before to a scheduled demerger from parent firm Anglo American.

For feedback and suggestions, write to us at [e-mail]