Login ID:
Partner Login
Contact Us : 7066511911

Gold Holds Steady Amid Hopes of Imminent Fed Rate Cuts

19 Jun 2024 8:21 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai, 19 Jun (Commoditiescontrol): Gold prices remained stable on Wednesday following weaker-than-expected U.S. retail sales data, which bolstered expectations of imminent Federal Reserve rate cuts. Spot gold was steady at $2,327.76 per ounce, while U.S. gold futures dipped 0.2% to $2,342.00.

The Commerce Department's Census Bureau reported a modest 0.1% rise in U.S. retail sales last month, falling short of the 0.3% increase predicted by economists polled by Reuters. This softer data has reinforced the belief that the Federal Reserve may soon lower interest rates.

New York Fed President John Williams indicated that interest rates would gradually decline over time but did not specify when the central bank might start easing monetary policy. Currently, traders are pricing in a 67% chance of a rate cut by the Fed in September, according to the CME FedWatch Tool.

Lower interest rates generally decrease the opportunity cost of holding non-yielding assets like gold, making them more attractive to investors.

Federal Reserve officials, encouraged by recent economic data, are seeking further evidence that inflation is cooling and monitoring the robust labor market for any signs of strain. Many expect at least one or two rate cuts by the end of the year.

Investors are also eyeing upcoming economic indicators, including weekly jobless claims due on Thursday and flash purchasing managers' indexes on Friday, for more insights into consumer spending and economic strength.

Additionally, the World Gold Council (WGC) revealed in its annual survey that more central banks plan to increase their gold reserves within the next year. This trend is driven by macroeconomic and political uncertainties, despite the high prices of the precious metal.

In other precious metals, spot silver declined 0.4% to $29.40 per ounce, platinum fell 0.4% to $968.59, while palladium saw a slight increase of 0.1% to $887.67.

(By Commoditiescontrol Bureau: 09820130172)

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Post Comment  

Latest Market Commentary
ZCE Cotton And Yarn Evening Closing - 17 Jul 2024
India Miller Slowdown Cotton Buying as Season End Appro...
Major Producing States Receive 15,700 Bales of Cotton
Kapas Arrival Zero in Madhya Pradesh; Cotton Seed Price...
Cotton Prices Stable in Karnataka as Spinning Mills Lim...
Top 5 News
ZCE Cotton And Yarn Evening Closing - 17 Jul 2024
DCE Oil Complex Evening Closing - 17 Jul 2024
Mentha Oil Prices Extend Gains for Second Straight Day
Guar Seed & Gum Prices Steady; Futures Trade Suspended ...
London Metal Exchange Settlement - 17-Jul-2024
Top 5 Special Reports
USDA Forecasts Global Cotton Production Surge, Expects ...
Argentina's Currency Market Intervention: Will It Reviv...
Weekly: Sugar Prices Decline Amid Strong Brazilian Outp...
Weekly: Cotton Extend Loss For 7th Week; Bears Tighten ...
USDA lowers 2024-25 global soybean production estimates...
Copyright © CC Commodity Info Services LLP. All rights reserved.