Gold Prices remain steady

9 May 2024 , 10:58 AM

As investors shifted their attention to U.S. economic data, which may provide further information on when the Federal Reserve may decrease interest rates, gold prices remained unchanged on Thursday.

The spot price of gold was slightly altered at $2,307.96 per ounce. At $2,315.00, gold futures saw a 0.3% decline.

The University of Michigan’s consumer sentiment reading is coming on Friday at 12:30 GMT, along with the weekly jobless claims data for the United States. Next week is when the consumer price index data is expected to be made public.

The FedWatch Tool from the CME indicates that traders are presently pricing in a roughly 66% possibility of a rate drop by the Fed in September.

Holding bullion has a lower opportunity cost when interest rates are lower.

Susan Collins, President of the Federal Reserve Bank of Boston, stated on Wednesday that a cooling off of the US economy is necessary to bring inflation back to the central bank’s target of 2%.

As inflation declines, the Bank of England is expected to be closer to cutting interest rates for the first time in four years, though it is likely to be careful in indicating when a move may be imminent.

In terms of geopolitics, although talks to halt Israel’s seven-month-long offensive were still ongoing in Cairo, Hamas declared on Wednesday that it was not willing to give in any more ground to the Israeli government in the talks over a truce for Gaza.

Spot silver dropped 0.2% to an ounce’s $27.29. Palladium increased by 0.3% to $954.23 and platinum by 0.4% to $975.75.

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