On Wednesday, the price of gold held steady, primarily influenced by the strength of the dollar and market anticipation of forthcoming US economic indicators. Analysts are closely watching the data for clues on the possibility of future interest rate reductions later in the year. Moreover, geopolitical tensions and the fluctuating job market have shaped market sentiment. Gold prices hold firm despite the solid dollar. ADP employment data and Fed officials’ remarks to provide insights into future monetary policy.
In the latest market performance update:
– The price of Spot Gold decreased by 0.2% to reach $2,658.07 per ounce as of 0036 GMT.
– US Gold Futures experienced a 0.4% decline, reaching $2,679.10.
– The dollar remained strong, showing its most significant weekly increase.
– Bullion achieved a new record high of $2,685.42 on Thursday.
Regarding job market data and interest rates:
– US job openings unexpectedly rose in August after two months of decline
– Hiring remained weak, indicating a slowing labor market
– There’s a 63% chance of a 25-basis-point cut in interest rates by the Federal Reserve in November, which would reduce the opportunity cost of holding gold
Geopolitical tensions:
– The Iran-Israel conflict, marked by Iran’s missile attack on Israel, has ended, but fears of a wider war persist
– The US and Israel have promised to retaliate against Tehran’s escalation
Market expectations:
– The ADP employment data, due later in the day, may provide hints on the Fed rate-cut cycle
– Fed officials’ remarks are expected to provide insights into future monetary policy
Gold demand and holdings:
– SPDR Gold Trust holdings rose 0.33% to 874.82 tonnes on Tuesday
– Physical demand tumbled across key markets due to rising prices, with retail consumers opting to sell holdings and book profits
Other precious metals:
– Spot Silver fell 0.3% to $31.31 per ounce
– Platinum gained 0.4% to $989.49
– Palladium rose 0.61% to $1,000.75