Gold prices firmed up, surpassing $2,450, driven by expectations of a Federal Reserve rate cut and escalating Middle East tensions. Investors await U.S. employment data.
Gold prices firmed up on Friday, surpassing $2,450, and are expected to see a weekly rise. This increase is driven by the anticipation of a Federal Reserve rate cut in September and escalating tensions in the Middle East. Meanwhile, market participants eagerly await U.S. employment data for further direction.
Spot gold rose 0.2% to $2,451.07 per ounce, reflecting a weekly gain of over 2%. U.S. futures climbed 0.6% to $2,495.60.
Investors closely monitor the U.S. employment report for new insights into the future trajectory of monetary policy. On Wednesday, Federal Reserve Chair Jerome Powell indicated that interest rates could be lowered as early as September if the U.S. economy progresses as expected.
Analysts suggest that prices might exceed the $2,500 mark. Geopolitical tensions and a weaker employment report could bolster expectations of a 50-basis point cut in September. Gold bars act as a hedge against geopolitical and economic risks. Additionally, lower interest rates reduce the opportunity cost of holding non-yielding bullion.
In other metals, spot silver increased by 0.2% to $28.60 per ounce, and platinum advanced by 0.4% to $962.09, both heading towards weekly gains. However, palladium saw a decline of 0.7% to $899.15
Source: APS
