Gold remains stable in early trade

1 Jul 2024 , 10:13 AM

Gold prices maintained firm in early Asian hours on Monday, bolstered by statistics showing that inflation in the United States has slowed, raising hopes that the Federal Reserve may begin decreasing interest rates this year.

The spot gold price remained barely changed at $2,323.74 per ounce. Prices rose by more than 4% in the second quarter. Gold futures fell 0.3% to $2,333.

Data released on Friday showed that U.S. prices were stable in May, while consumer spending increased somewhat, a trend that could push the Fed closer to cutting rates this year.

Lower interest rates diminish the potential cost of storing non-yielding bullion.

According to the CME FedWatch tool, traders now expect the first rate cut in September with a 63% probability.

Last week, India’s physical gold demand remained subdued due to rising prices, with some customers delaying purchases in the hope that the government will reduce import duties in the next budget.

Top consumer. China’s manufacturing activity dipped for the second straight month in June, while services activity stagnated, according to an official survey released on Sunday, fueling calls for additional stimulus.

Spot silver dipped 0.3% to $29.05 per ounce, platinum was unchanged at $993.60, and palladium rose 0.2% to $974.50.

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