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Home Gold Prices Gold Prices Edge Higher as Fed Rate Cut Bets Intensify Ahead of Payroll Data(June 7)

Gold Prices Edge Higher as Fed Rate Cut Bets Intensify Ahead of Payroll Data(June 7)

by anna

Gold prices climbed in Asian trade on Friday, nearing significant highs amid growing expectations of interest rate cuts by the Federal Reserve. This anticipation is fueled by the upcoming nonfarm payrolls data release later today.

The yellow metal is poised for weekly gains, driven by a series of weak U.S. economic indicators that have bolstered hopes for a Fed rate cut in September. These expectations have pushed the dollar to two-month lows, enhancing the appeal of gold.

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Adding to the positive sentiment for gold, recent interest rate cuts by the Bank of Canada and the European Central Bank have fueled optimism over looser global monetary policies, which are beneficial for metal markets.

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As of 00:59 ET (04:59 GMT), spot gold rose 0.5% to $2,386.55 an ounce, while gold futures for August delivery increased by 0.6% to $2,405.40 an ounce.

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Gold on Track for Weekly Gains Ahead of Key Payroll Data

Spot gold is set to gain about 2.6% this week, supported by soft U.S. economic data, particularly concerning the labor market, which has heightened expectations for interest rate cuts.

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The market is now focused on the nonfarm payrolls data due later on Friday, which is expected to provide clearer insights into the labor sector and influence future interest rate decisions. This data precedes a Federal Reserve meeting next week, where the central bank is anticipated to maintain current rates. However, any indications regarding future monetary policy will be closely scrutinized, especially in light of the recent economic cooling.

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