Gold Prices Today: Yellow metal hits one-month high on renewed US Fed rate cut hopes; silver up 3% | Stock Market News

Gold prices extended gains on Friday to their highest level in a month following key U.S. jobs data that showed the labor market was softening, lifting expectations around a Federal Reserve interest rate cut in September.

Spot gold was up 1.1% at $2,380.91 per ounce as of 11:08 a.m. Bullion is up more than 2% for the week so far. U.S. gold futures gained 0.8% to $2,389.10.

“Gold is trading at one-month highs as lower payroll revisions and yet another uptick in the unemployment rate help ‘cement’ a September rate cut,” said Tai Wong, a New York-based independent metals trader.

“Bulls are eyeing a return to $2,450 all-time highs if the Fed starts openly hinting at September,” he added.

Data showed U.S. non-farm payrolls grew by 206,000 jobs in June, slightly higher than the 190,000 new jobs estimated by economists polled by Reuters.

Meanwhile, estimated job growth for May was revised down to 218,000 new jobs from 272,000, while April’s job growth was revised down to 108,000 new jobs from a previous 165,000. The unemployment rate rose to 4.1%, slightly higher than the estimated 4.0%.

Following the data, U.S. interest-rate futures prices reflected continued market confidence in a September rate cut, with the implied probability remaining at about 72%.

Traders are also pricing in a rising chance of a second rate cut in December. Lower rates reduce the opportunity cost of holding non-yielding gold.

The dollar slipped to a three-week low against its rivals after the jobs data, making gold less expensive for other currency holders, while yield on the benchmark U.S. 10-year Treasury note crept lower.

Elsewhere, spot silver rose 2.3% to $31.10 per ounce and is on track for its best week since May 17. Platinum rose 3% to $1,032.25 per ounce and palladium gained 0.8% to $1,025.75.

Source link


Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Fed rate cut debate to heat up as US job market cools

Fri Jul 5 , 2024
July 5 – Federal Reserve policymakers got more evidence of U.S. labor-market cooling on Friday that could boost their confidence they are winning their fight on inflation, and open the path to a more active debate on interest-rate cuts when they next meet in late July. The Labor Department report […]

You May Like