Mumbai, 6 Aug (Commoditiescontrol): Gold prices inched higher on Tuesday, recovering from multi-week lows as U.S. central bank officials reassured markets and signaled a potential interest rate cut in September. Spot gold rose by 0.2% to $2,411.97 per ounce as of 0200 GMT, while U.S. gold futures saw a 0.3% increase to $2,452.60 per ounce.
This slight rebound comes after bullion experienced its worst trading day in nearly two weeks, largely influenced by a global market sell-off driven by growing economic worries. Despite these concerns, U.S. Federal Reserve officials downplayed the likelihood of an imminent recession, though they acknowledged that rate cuts might be necessary to prevent one.
San Francisco Fed President Mary Daly emphasized the need for proactive policy, expressing openness to cutting interest rates to support the economy. Markets are currently pricing in a 50-basis-point rate cut at the Federal Reserve's September meeting, with another reduction expected in December, according to the CME FedWatch tool.
Lower interest rates typically weaken the U.S. dollar and bond yields, making non-yielding assets like gold more attractive to investors. As a result, gold’s appeal is likely to remain strong as markets adjust to these expectations.
Investors are also closely monitoring upcoming U.S. economic data, including trade deficit figures set for release later today and initial jobless claims on Thursday, which could provide further insight into the state of the economy.
In other precious metals, spot silver increased by 0.2% to $27.33 per ounce, platinum gained nearly 1% to $914.90 per ounce, and palladium rose 0.8% to $856.83 per ounce after touching its lowest levels since August 2018 on Monday.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
