Mumbai, 20 Jun (Commoditiescontrol): Gold prices edged higher on Thursday, driven by tepid U.S. economic activity that bolstered expectations for Federal Reserve interest rate cuts later this year. Spot gold increased by 0.2%, reaching $2,331.38 per ounce, while U.S. gold futures dipped slightly by 0.1% to $2,345.00.
Recent data pointing to a cooling labor market and easing price pressures have led the Federal Reserve to proceed cautiously, with many anticipating one or two interest rate cuts by year's end. The latest figures from the Commerce Department’s Census Bureau showed U.S. retail sales rising by just 0.1% last month, below economists' forecasts of a 0.3% increase.
Investors are now turning their attention to the upcoming weekly jobless claims, due at 1230 GMT, and the flash purchasing managers' indexes on Friday, which are expected to provide further insights into consumer spending and economic strength. According to the CME FedWatch Tool, traders are currently pricing in a 66% chance of a Fed rate cut in September.
Lower interest rates generally make non-yielding assets like gold more attractive by reducing the opportunity cost of holding them.
In other metals, spot silver rose by 0.5% to $29.91 per ounce, while platinum and palladium both saw declines of 0.2%, settling at $978.42 and $903.25 per ounce, respectively.
Meanwhile, the Bank of England is expected to maintain its interest rate at a 16-year high of 5.25% due to persistent underlying inflation pressures.
This complex interplay of economic indicators and central bank policies continues to shape market expectations and drive movements in precious metal prices.
(By Commoditiescontrol Bureau: 09820130172)
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