Gold on a 4-week rise as Fed rate cuts loom

19 Jul 2024 , 10:29 AM

Gold prices fell on Friday, but were on course for a fourth consecutive weekly rise as anticipation that the Federal Reserve would decrease interest rates in September boosted demand for non-yielding gold.

Spot gold was down 0.4% at $2,434.38 per ounce, following reaching a record high of $2,483.60 on Wednesday. Prices rose 1% over the week.

Gold futures down 0.8% to $2,435.70.

According to the CME FedWatch Tool, markets expect a 98% chance of a rate cut in the United States in September.

Fed Chair Jerome Powell stated earlier this week that recent inflation data “add somewhat to confidence” that the pace of price increases is gradually returning to the central bank’s target, implying that rate cuts may be on the horizon.

Meanwhile, Fed Bank of San Francisco President Mary Daly expressed her need for greater confidence that inflation is returning to the Fed’s 2% target.

According to data released on Thursday, the number of Americans submitting new unemployment claims jumped more than expected last week, although this did not indicate a substantial shift in the labour market despite temporary automobile production closures and interruptions from Hurricane Beryl.

According to customs data, Swiss gold exports in June fell to their lowest level since April 2022 due to lower shipments to China and India.

According to a recent study by Bank of America Private Bank, 45% of rich investors under the age of 43 possess gold as a physical asset, with another 45% interested in holding it.

Spot silver sank 1.4% to $29.65 per ounce, platinum slipped 0.6% to $961.80, while palladium slid 0.3% to $927.20.

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