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Home Gold News Gold Prices Rise, Set for Second Consecutive Weekly Gain

Gold Prices Rise, Set for Second Consecutive Weekly Gain

by anna

Gold prices have experienced an upward trend, heading for a second consecutive weekly gain. The boost in gold prices has been influenced by diminishing chances of U.S. interest rate hikes this year, driven by data releases throughout the week, with the pivotal jobs report expected later in the day.

As of 0805 GMT, spot gold has risen by 0.2% to reach $1,943.11 per ounce. This upward movement in gold prices has positioned it for a weekly gain of more than 1.4%, following its recent peak at one-month highs earlier in the week. Meanwhile, U.S. gold futures have also climbed by 0.2% to $1,969.90.

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Analysts suggest that the U.S. non-farm payrolls (NFP) report, scheduled for 1230 GMT, will be a significant factor affecting gold prices. Earlier data releases this week indicated a decline in job openings to a 2.5-year low in July and slightly slower economic growth than anticipated in the second quarter.

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Tim Waterer, Chief Market Analyst at KCM Trade, noted that if the NFP report reveals a lower figure, it will likely lead to a continued decline in U.S. Treasury yields. The recent decrease in U.S. Treasury yields has made gold more attractive to investors, contributing to its upward trajectory this week.

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This week’s soft economic readings have led traders to reduce their expectations of rate hikes by the Federal Reserve in November and December. Consequently, gold, as a non-interest-bearing asset, has regained appeal among investors, especially when interest rates are expected to remain unchanged.

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In addition to gold, other precious metals have also experienced gains. Spot silver has risen by 0.6% to $24.58 per ounce, while platinum has increased by 0.8% to $975.53. Palladium has gained 0.6% to reach $1,222.00.

The movement in gold and other precious metals reflects the broader sentiment in the financial markets, influenced by economic data and central bank policies.

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