Mumbai, 8 Aug (Commoditiescontrol): Gold prices edged higher on Thursday, supported by growing expectations of a US interest rate cut and persistent tensions in the Middle East. Spot gold rose 0.3% to $2,387.37 per ounce, while US gold futures slipped 0.3% to $2,426.00.
Market expectations of a 50 basis point rate cut in September have increased to 72%, up from 70% on Monday, according to the CME FedWatch Tool. Additionally, major brokerages now anticipate the Fed to cut rates in all three remaining meetings this year. Lower interest rates reduce the opportunity cost of holding non-yielding bullion, supporting gold prices.
Traders await economic data, including initial jobless claims, for insights into the Federal Reserve's policy path. Richmond Fed President Tom Barkin is also scheduled to speak later in the day.
In other news, China's central bank did not purchase gold for its reserves for the third consecutive month in July. Tensions in the Middle East persist, with Iran's president warning of retaliation against aggression.
Britain's Royal Mint announced plans to extract gold from electronic waste at a new factory in south Wales. Precious metal prices were mixed, with spot silver up 0.6% to $26.76 per ounce, platinum down 0.4% to $915.30, and palladium gaining 0.56% to $887.25.
Impala Platinum reported a significant loss due to declining metal prices, highlighting the challenges faced by the industry. As market focus remains on interest rates and geopolitical tensions, gold prices are likely to remain volatile.
(By Commoditiescontrol Bureau: 09820130172)
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