(MENAFN) Gold prices held steady in recent trading sessions, buoyed by indications of easing inflationary pressures in the United States for May. Spot gold traded marginally unchanged at USD2,325.49 per ounce, following a robust 4 percent gain over the second quarter. Meanwhile, US gold futures edged lower by 0.2 percent to USD2,334.80.
Recent data from the US showed that the personal consumption expenditures (PCE) index, a key inflation gauge, rose by 2.6 percent year-on-year through the end of May, slightly lower than the 2.7 percent increase recorded in April. The inflation figures for May aligned closely with economists’ forecasts, contributing to market expectations that the Federal Reserve (Fed) may embark on interest rate cuts later this year.
According to the CME FedWatch tool, investors are currently pricing in a probability of approximately 64 percent for a Fed rate reduction in September. Lower interest rates typically diminish the opportunity cost of holding non-yielding assets such as gold, making the precious metal more attractive to investors seeking safe-haven assets amidst economic uncertainties.
In the broader market for precious metals, silver settled at USD29.12 per ounce in spot transactions, while platinum rose by 0.3 percent to USD996.12 and palladium climbed 0.6 percent to USD978.46 per ounce. These movements reflect the cautious optimism among investors regarding potential monetary policy adjustments by the Fed and their implications for precious metal markets.
MENAFN02072024000045015682ID1108397662
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Credit: Source link
