Gold prices have advanced to nearly one-month highs as a fresh set of weak U.S. data further fuels expectations that the Federal Reserve will pause interest rate hikes for the remainder of the year. Despite a potential monthly decline of around 1%, gold has gained ground due to the U.S. dollar’s prospective monthly rise, which is the first in three months. U.S. Treasury yields, which reached levels last seen in 2007, are also on track for their fourth consecutive monthly climb.
spot gold is up 0.2% at $1,945.63 per ounce, while U.S. gold futures are steadying at $1,972.50.
Michael Langford, Chief Investment Officer at Scorpion Minerals, noted that traders are closely monitoring the news cycle to gain a more comprehensive perspective on inflationary pressures. The upcoming release of the Personal Consumption Expenditures (PCE) and monthly employment figures will help determine the direction of U.S. interest rates.
This week’s data reveals a slightly slower second-quarter growth rate for the U.S. economy than previously estimated, along with a drop in job openings to the lowest level in nearly 2.5 years in July.
Nicholas Frappell, Global Head of Institutional Markets at ABC Refinery, emphasized that while central banks are discussing tighter monetary policies, the key factor driving the situation is the weakening of the U.S. dollar. The U.S. dollar index has declined by approximately 1%, and bond yields have decreased by about 3% over the week, boosting gold prices, which do not pay interest.
In related markets, spot silver has slipped 0.4% to $24.55 per ounce, after reaching a one-month high on Wednesday. Platinum has risen by 0.3% to $976.16, heading for its second consecutive monthly gain, while palladium has climbed 0.6% to $1,229.56, despite being on track for a nearly 4% monthly decline.
