Gold Up on US Economic Jitters

24 Jul 2024 , 10:46 AM

Gold prices rose slightly on Wednesday, as investors awaited U.S. economic data that could impact the Federal Reserve’s rate-cut schedule.

Spot gold was up 0.3% to $2,416.62 per ounce. Gold futures rose 0.4% to $2,417.10.

Investors expect important U.S. data releases this week, including the second-quarter GDP figure on Thursday and the June personal consumption expenditures (PCE) price index number on Friday, to provide further information regarding the rate-cutting timeline.

According to a growing majority of economists polled by Reuters, the Fed will lower interest rates only twice this year, in September and December, as strong US consumer demand warrants a cautious stance despite declining inflation.

Bullion prices reached an all-time high of $2,483.60 last week, fuelled by increased expectations of rate reduction. Low interest rates lower the opportunity cost of owning non-yielding gold.

Spot silver gained 0.2% to $29.28 per ounce. Platinum rose 0.3% to $945.73, while palladium held steady at $925.64.

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