As US economic cues raise eyebrows, traders keenly await inflation’s narrative on future rate decisions
31 August 2023 - 07:37
by Agency Staff
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Gold prices firmed near one-month highs on Thursday as a fresh set of soft US data added to expectations that the Federal Reserve will pause rate hikes this year, though inflation readings due later in the day could amend this outlook.
Spot gold was up 0.2% at $1,945.40 per ounce by 3.31am GMT. US gold futures steadied at $1,972.40.
Despite this week’s gains, bullion is on track for a monthly decline of nearly 1% as US treasury yields are poised for their fourth straight monthly climb, having reached 2007 levels last week.
“Traders are waiting to see the full news cycle develop a more comprehensive view on inflationary pressures,” said Michael Langford, chief investment officer at Scorpion Minerals.
The personal consumption expenditures (PCE) and monthly employment numbers will provide direction on US interest rates, Langford added.
Data released so far this week showed that the US economy grew at a slightly less brisk pace than initially thought in the second quarter, while US job openings dropped to the lowest level in nearly 2½ years in July as the labour market gradually slowed.
The Fed can end its interest rate-hiking cycle if the labour market and economic growth continue to slow at the current gradual pace, the former president of the Boston Fed said on Wednesday.
Meanwhile, an official survey showed that manufacturing activity contracted for a fifth straight month in August in top bullion-consumer China.
Among other metals, spot silver eased 0.3% to $24.59 per ounce, having climbed to a more than one-month high on Wednesday.
Platinum steadied at $974.13 as it heads for its second consecutive monthly gain. Palladium climbed 0.9% to $1,232.98, but was set for a 4% monthly fall.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold glistens on weak US data
As US economic cues raise eyebrows, traders keenly await inflation’s narrative on future rate decisions
Gold prices firmed near one-month highs on Thursday as a fresh set of soft US data added to expectations that the Federal Reserve will pause rate hikes this year, though inflation readings due later in the day could amend this outlook.
Spot gold was up 0.2% at $1,945.40 per ounce by 3.31am GMT. US gold futures steadied at $1,972.40.
Despite this week’s gains, bullion is on track for a monthly decline of nearly 1% as US treasury yields are poised for their fourth straight monthly climb, having reached 2007 levels last week.
“Traders are waiting to see the full news cycle develop a more comprehensive view on inflationary pressures,” said Michael Langford, chief investment officer at Scorpion Minerals.
The personal consumption expenditures (PCE) and monthly employment numbers will provide direction on US interest rates, Langford added.
Data released so far this week showed that the US economy grew at a slightly less brisk pace than initially thought in the second quarter, while US job openings dropped to the lowest level in nearly 2½ years in July as the labour market gradually slowed.
The Fed can end its interest rate-hiking cycle if the labour market and economic growth continue to slow at the current gradual pace, the former president of the Boston Fed said on Wednesday.
Meanwhile, an official survey showed that manufacturing activity contracted for a fifth straight month in August in top bullion-consumer China.
Among other metals, spot silver eased 0.3% to $24.59 per ounce, having climbed to a more than one-month high on Wednesday.
Platinum steadied at $974.13 as it heads for its second consecutive monthly gain. Palladium climbed 0.9% to $1,232.98, but was set for a 4% monthly fall.
Reuters
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