Gold Up Ahead of US Non Farm Payrolls Data

6 Jun 2024 , 10:07 AM

As investors awaited U.S. non-farm payrolls data that could determine whether interest rates would be lowered faster than anticipated this year, gold prices increased on Thursday, consolidating gains from the previous session.

Spot gold was up 0.4% at $2,365.40 an ounce, following a gain of more than 1% on Wednesday. To $2,384.50, gold futures increased by 0.4%.

While benchmark U.S. 10-year Treasury yields hovered around a two-month low, the dollar index dipped by 0.1%, increasing investor interest in bullion.

Although figures for the previous month was revised lower, private payroll growth in the United States in May was less than anticipated.

To assess the state of the US economy and whether it will prevent the Federal Reserve from lowering interest rates in September, investors are currently awaiting the non-farm payrolls data, which is scheduled for release on Friday.

A majority of forecasts in a Reuters survey indicated there was a considerable danger they would choose to cut the key interest rate only once or not at all. The Fed will cut its key interest rate in September and again this year.

The CME FedWatch tool indicates that traders are presently pricing in a 70% possibility of a rate drop in September.

Russia’s finance ministry announced that it will buy less gold and foreign currency in the upcoming month, which will result in a rise in the state’s total forex sales.

Spot silver increased 1.2% to $30.36 an ounce, palladium gained 1.1% to $941.25, while platinum increased 0.9% to $1,001.70.

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