Gold gains on rising odds of deeper US rate cut

Home Business Gold gains on rising odds of deeper US rate cut 05-09-2024 11:00 AM Ammon News - Gold rose on Thursday after recent data raised bets for a supersized Federal Reserve interest rate cut this month, but caution ahead of U.S. payrolls data capped further gains. Spot gold advanced 0.5% to $2,506.00 per ounce by 0630 GMT. U.S. gold futures firmed 0.4% to $2,536.10. Non-yielding bullion tends to perform well when interest rates are low. It is also considered a hedge against economic and political uncertainties. Data overnight showed that U.S. job openings dropped to a 3-1/2-year low in July, but the reduction on its own is possibly not enough to warrant a half-percentage-point rate cut by the Fed. Traders raised the odds of a 50-basis-point cut to 45% from 38%, according to the CME FedWatch Tool. Focus is on non-farm payrolls (NFP) report due on Friday. U.S. stocks closed mostly lower in choppy trading on Wednesday, following data that showed more weakness in the U.S. labor market. Spot silver gained 0.3% to $28.37, platinum climbed 1% to $911.58 and palladium rose 0.3% at $936.43. Reuters

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Gold gains on rising odds of deeper US rate cut

05-09-2024 11:00 AM

Ammon News - Gold rose on Thursday after recent data raised bets for a supersized Federal Reserve interest rate cut this month, but caution ahead of U.S. payrolls data capped further gains.

Spot gold advanced 0.5% to $2,506.00 per ounce by 0630 GMT. U.S. gold futures firmed 0.4% to $2,536.10.

Non-yielding bullion tends to perform well when interest rates are low. It is also considered a hedge against economic and political uncertainties.

Data overnight showed that U.S. job openings dropped to a 3-1/2-year low in July, but the reduction on its own is possibly not enough to warrant a half-percentage-point rate cut by the Fed.

Traders raised the odds of a 50-basis-point cut to 45% from 38%, according to the CME FedWatch Tool. Focus is on non-farm payrolls (NFP) report due on Friday.

U.S. stocks closed mostly lower in choppy trading on Wednesday, following data that showed more weakness in the U.S. labor market.

Spot silver gained 0.3% to $28.37, platinum climbed 1% to $911.58 and palladium rose 0.3% at $936.43.

Reuters

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