Gold prices remain steady

21 Jun 2024 , 10:10 AM

Gold prices remained stable on Friday but were poised for their second consecutive weekly gain. Weak economic data from the U.S. has fueled expectations that the Federal Reserve might cut interest rates this year.

Current Market Status

• Spot Gold: Little changed at $2,358.31 per ounce as of 0139 GMT.
• U.S. Gold Futures: Rose by 0.2% to $2,372.90 per ounce, reaching a two-week high on Thursday, the highest level since June 7.
• Weekly Gain: Gold has increased by 1.2% so far this week.

Economic Indicators

Recent data indicates a slowdown in the U.S. economy:

• Labor Market and Price Pressures: Last week’s reports showed a moderation in the labor market and price pressures.
• Retail Sales: Soft retail sales data on Tuesday pointed to sluggish economic activity in the second quarter.
• Unemployment and Housing: First-time applications for U.S. unemployment benefits fell moderately last week, while new housing construction in May dropped to its lowest level in nearly four years.

Investors are now looking at the flash purchasing managers’ indexes due at 0145 GMT for further insights into the economy’s strength. Current market sentiment suggests a 64% chance of a Fed rate cut in September, according to the CME FedWatch Tool. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold.

Other Precious Metals

• Spot Silver: Fell by 0.5% to $30.56 per ounce.
• Platinum: Increased by 0.3% to $981.00 per ounce.
• Palladium: Rose by 0.3% to $926.00 per ounce.