US Data Dampens Gold Prices

3 Sep 2024 , 11:10 AM

Gold prices fell in early Asian hours on Tuesday as investors waited for a flood of US economic data to determine the size of the Federal Reserve’s projected interest rate decrease this month.

Spot gold was down 0.1% at $2,495.79 per ounce, having hit a more than one-week low the previous session.

US gold futures were barely changed at $2,527.70.

The major event this week will be the non-farm payrolls report for the United States, which is due on Friday. Investors are closely watching ISM surveys, JOLTS job vacancies, and the ADP employment data.

Traders predict a 31% likelihood of a 50-basis-point rate decrease at the US central bank’s September 17-18 policy meeting, and a 69% chance of a quarter-point cut.

Lower interest rates lower the opportunity cost of keeping zero-yield bullion.

Last week, data revealed that U.S. consumer spending climbed significantly in July, implying that the economy remained on sturdier ground early in the third quarter and arguing against a half-point interest rate cut by the Fed.

Meanwhile, factories in the eurozone continued to decrease last month, according to surveys, with statistics indicating that a rebound could be some time off, but Asian and British manufacturers showed modest signs of recovery.

Spot silver slipped 0.1% to $28.47 per ounce; platinum sank 0.7% to $923.88; and palladium slid 0.4% to $975.00.

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