Stronger Risk Appetite Sours Gold Prices

9 Jul 2024 , 08:43 AM

Gold prices fell more than 1% on Monday, dragged down by a risk-on rise in equities and profit-taking by investors following a big surge the previous day on anticipation that the US Federal Reserve would decrease interest rates in September.

Spot gold fell 1.5% to $2,354.59 per ounce, after reaching its highest level since May 22 on Friday. Gold futures fell 1.5% to $2,362.70.

The Nasdaq and S&P 500 set new highs, while the Dow reached a more than one-month high.

Data released this week showed a weakening employment market, putting the US central bank on track to begin slashing interest rates soon.

Markets are already pricing in a 71% chance of the Fed lowering interest rates in September and again in December.

This week, investors will be focused on Fed Chair Jerome Powell’s semi-annual Congressional testimony, comments from a number of Fed officials, and U.S. inflation data due on Thursday.

Meanwhile, top consumer In June, China’s central bank did not add to its gold holdings for the second month in a row.

Spot silver declined 1.8% to $30.64 per ounce, while platinum dropped 2.5% to $1,001.60 and palladium fell 2% to $1,005.98.

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