- Gold prices rose on global stock exchanges during early trading today, Thursday, after US economic data came in lower than expected, raising hopes that the Federal Reserve will cut interest rates next September.
- Spot gold rose 0.3% to $2,362.10 an ounce, after hitting a near two-week high in the previous session, while U.S. gold futures were steady at $2,369.80.
- US data showed on Wednesday that the economy is slowing, and a separate report showed that the number of Americans filing new applications for unemployment benefits rose last week, indicating a slowdown in the labor market.
- Traders are now awaiting the US non-farm payrolls data, due out tomorrow, Friday.
- The dollar fell, making the greenback-priced metal cheaper for holders of other currencies.
- Markets now expect the Fed to cut rates at its September meeting, according to the CME FedWatch tool.
- Low interest rates reduce the opportunity cost of holding non-yielding gold.
- Meanwhile, Federal Reserve officials acknowledged at their last meeting that the U.S. economy appeared to be slowing, but still advised a wait-and-see approach before committing to cutting interest rates, according to minutes of the June 11-12 meeting.
- Among other precious metals, spot silver rose 0.2% to $30.54 an ounce, platinum rose 0.5% to $1,002.28 an ounce, and palladium fell 0.6% to $1,023.23 an ounce, after rising to its highest level since mid-April in the previous session.
