Gold prices remained stable on Friday, poised for their second consecutive weekly gain, buoyed by expectations of potential interest rate cuts by the Federal Reserve following weak economic indicators from the U.S.
Current Market Overview
Spot Gold: Little changed at $2,358.31 per ounce as of 0139 GMT.
U.S. Gold Futures: Rose by 0.2% to $2,372.90 per ounce, achieving a two-week high on Thursday, the highest since June 7.
Weekly Performance: Gold has risen by 1.2% so far this week.
Economic Indicators
Recent economic data from the U.S. has pointed to a slowdown:
Labor Market and Price Pressures: Reports last week indicated a moderation in the labor market and price pressures.
Retail Sales: Soft retail sales data earlier this week suggested sluggish economic activity in the second quarter.
Unemployment and Housing: First-time applications for unemployment benefits decreased moderately last week, while new housing construction in May fell to its lowest level in nearly four years.
Investor focus now shifts to the flash purchasing managers’ indexes expected at 0145 GMT, which will provide further insights into the strength of the economy. Market sentiment currently implies a 64% likelihood of a Fed rate cut in September, according to the CME FedWatch Tool. Lower interest rates typically decrease the opportunity cost of holding non-yielding assets such as gold.
Other Precious Metals
Spot Silver: Declined by 0.5% to $30.56 per ounce.
Platinum: Increased by 0.3% to $981.00 per ounce.
Palladium: Rose by 0.3% to $926.00 per ounce.
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