March 5 (Reuters) - Gold prices clung to a three-month peak on Tuesday, supported by softer U.S. manufacturing and construction spending, while investors awaited Federal Reserve Chair Jerome Powell's testimony and key jobs data due this week. * Spot gold XAU= edged 0.1% lower to $2,112.39 per ounce, as of 0230 GMT, but hovered near Monday's levels of $2119.69, its highest since Dec. 4. U.S. gold futures GCcv1 fell 0.3% to $2,120.50. * London's gold price benchmark hit an all-time high of $2,098.05 per troy ounce at an afternoon auction on Monday, surpassing the previous record of $2,078.40 set on Dec. 28, the London Bullion Market Association (LBMA) said. * Market focus is on Fed Chair Powell's two-day congressional testimony on Wednesday and Thursday. * Other economic releases due this week that could move the needle on U.S. rate cut expectations include Institute for Supply Management (ISM) services data at 1500 GMT, and the Job Openings and Labor Turnover Survey (JOLTS) on Wednesday, and the non-farm payroll report on Friday. * Data last week showed U.S. manufacturing slumped further in February and inflation gradually easing, while consumer sentiment stood weak. * The Fed is under no urgent pressure to cut rates given a "prospering" economy and job market, Atlanta Fed President Raphael Bostic said on Monday in remarks that highlighted the risk inflation may get stuck above the central bank's 2% target or be sent even higher by "pent-up exuberance." * Traders now see a 65% chance for a June U.S. rate cut, according to LSEG's interest rate probability app. * Lower interest rates boost the appeal of non-yielding bullion.
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March 7 (Reuters) - Gold prices surged to a record high on Thursday, poised for their seventh consecutive daily rise, led by sluggish U.S. economic data and Federal Reserve Chair Jerome Powell's indications of potential rate cuts in the coming months should inflation alleviate. Spot gold XAU= rose 0.3% to $2,155.42 per ounce, as of 0723 GMT. U.S. gold futures GCcv1 added 0.2% to $2,163.10. Bullion continued its record-breaking rally, reaching an all-time high of $2,161.09 earlier in the session and looked set for its longest intra-day winning streak since at least November 2021. The marginal weakness in U.S. data gave gold a reason to rally, yet the magnitude of movement appears disproportionately large, possibly influenced by large futures buying that commenced on Friday, Marcus Garvey, head of commodities strategy team at Macquarie, said. Gold got a boost on Wednesday after Powell indicated that interest rate cuts were likely in the coming months "if the economy evolves broadly as expected," along with further evidence of falling inflation. Powell will speak again later in the day. Lower rates boost the appeal of non-yielding bullion. Powell's remarks, coupled with data released the same day indicating a softening of labour market conditions, resulted in U.S. Treasury yields and dollar sliding, increasing the appeal of gold. If Friday's labour market data or next week's inflation data shows any weakness, $2,300 would be the short term target based on technical levels, but that would be fairly a short lived phenomenon, before prices correct and consolidate, Macquarie's Garvey said. "We expect central bank buying to continue on the back of geo-political uncertainty. Slowdown in China will keep global growth contained. Hence, in an uncertain financial environment, gold will remain safe investment for banks," said Jigar Pandit, head of commodity and currency business at BNP Paribas' Sharekhan.
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March 1 (Reuters) - Gold prices hit a one-month high on Friday and were set for a second straight week of gains as the latest U.S. data pointed to signs of slowing inflation, bolstering investor expectations of an interest rate cut by the Federal Reserve in June. Spot gold XAU= edged 0.5% higher to $2,053.10 per ounce, as of 1226 GMT, its highest level since Feb. 2. U.S. gold futures GCcv1 firmed 0.4% at $2,063. "Inflation figures came out pretty much as expected and probably we are going to have the first rate cut very soon," Natixis analyst Bernard Dahdah said. Data on Thursday showed PCE inflation in January rose 2.4%, the smallest annual increase since February 2021, after a 2.6% advance in December. Receding inflationary pressures have helped the U.S. central bank to set the table for rate cuts likely later this year, potentially boosting demand for the non-yielding bullion. "The Fed rate cuts have to be relatively deep, whereby it's no longer interesting to hold bonds and invest into ETFs instead. I think there's still some space before we see a strong pickup in gold holdings," Dahdah said. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust's GLD holdings HLDSPDRGT=XAU, fell 3.3% in February and is down 6.4% so far this year. Investors will closely watch for remarks from at least six Fed policymakers due later on Friday. On the physical front, gold demand in India was subdued for the week as an uptick in domestic prices dented sentiment and prompted buyers to delay purchases.
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Gold prices surged to a fresh record high on Friday as data showing a rise in the U.S. unemployment rate boosted expectations that the Federal Reserve could begin cutting interest rates soon. Spot gold rose 0.7% to $2,173.49 per ounce by 10:42 a.m. ET (1542 GMT), while U.S. gold futures added 0.7% to $2,180.50. Bullion was on track to post its biggest weekly percentage increase since mid-October. Gold reached an all-time high of $2,185.19 after a report showed a rise in the U.S. unemployment rate and a moderation in wage gains despite job growth acceleration in February. "We still believe the same underlying premise remains, which is the combination of the expectation that the Fed is still going to cut rates later this year and dollar weakness," said David Meger, director of metals trading at High Ridge Futures. The dollar index was 0.3% lower, making gold cheaper for overseas buyers, while the yield on the 10-year U.S. Treasury fell to a more than one-month low. Traders boosted bets the Fed could start cutting interest rates in May to around 30% after the jobs report, although June remained the mostly likely scenario at 80%. Gold began its record run on Tuesday when it surpassed its December peak, primarily aided by growing indications of cooling price pressures and its traditional safe-haven cachet. Low interest rates are supportive for gold prices as they reduce the opportunity cost of holding bullion. "This (jobs) report will be seen as one that keeps the Fed on course for June. Gold prices will continue to trend higher overall, though a short consolidation may be necessary," said Tai Wong, a New York-based independent metals trader. Spot silver eased 0.3% to $24.25, while platinum was down 0.5% to $913.95 per ounce, and palladium lost 0.6% to $1,027.25. All were set for weekly gains.
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March 13 (Reuters) - Gold prices edged higher on Wednesday after dropping more than 1% in the previous session, as investors digested hotter-than-expected U.S. inflation data and still banked on a Federal Reserve interest rate cut in June. Spot gold XAU= edged up 0.3% to $2,163.12 per ounce, as of 1047 GMT. Bullion posted its worst single-day drop since Feb. 13 on Tuesday. U.S. gold futures GCcv1 rose 0.1% to $2,168.50. "The market driver behind the decline of gold is quite clear as the U.S. CPI numbers came in higher than expected," said Carlo Alberto De Casa, market analyst at Kinesis Money. "It's just a physiological correction after a long strike of positive days and markets are realizing that the Fed will not cut rates too quickly." Bullion slumped 1.1% on Tuesday as data indicated that U.S. consumer prices rose sharply in February, above expectations and indicating some inflation stickiness. Higher-than-expected inflation means that the US Fed will be under more pressure to keep interest rates higher for longer, weighing on non-yielding assets such as gold. However, Fed policymakers are still seen starting interest-rate cuts in June, even as a government report showed consumer prices rose last month more than expected. Traders now see about a 65% chance of a interest rate cut from the Fed in June, slight lower from the 72% seen before the data, according to the CME Group's FedWatch Tool. "While physical gold demand has been holding up well since 2021, a sharp price rally is likely to temper discretionary gold buying in 2024," analysts at ANZ Research wrote in a note. Focus now shifts to U.S. retail sales, producer price index, and weekly initial jobless claims print due on Thursday, which will provide a further update on the status of the US economy.
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Gold Reaches Record High Amid Market Speculations July 18, 2024 Gold has achieved a remarkable milestone, hitting an all-time high of $2,483.60. On Thursday, gold prices remained firm, close to this record peak as market speculations about an early interest-rate cut by the U.S. Federal Reserve intensified. This anticipation has limited gains in the dollar and Treasury yields, creating a conducive environment for gold. By 1155 GMT, spot gold had risen 0.3% to $2,464.90 per ounce, reflecting its robust performance. U.S. gold futures mirrored this trend, also climbing 0.3% to $2,468.20. "Gold continues to shine on growing speculation around lower U.S. interest rates this year. Recent dovish comments by Fed officials, complemented with a broadly weaker dollar and subdued Treasury yields, have sweetened appetite for the precious metal," noted Lukman Otunuga, senior research analyst at FXTM. Further signs of a cooling U.S. labor market and dovish remarks from Fed officials could sustain this upward momentum, potentially leading to new record highs. Fed Governor Christopher Waller and New York Fed President John Williams have highlighted the approaching shift towards looser monetary policy. Richmond Fed President Thomas Barkin expressed optimism about the broadening declines in inflation, adding to the positive market sentiment. A brief review conducted by LBMA suggests that gold prices will continue to rise in the second half of 2024. This trend underscores the enduring appeal of non-yielding bullion, especially in a low-interest-rate environment.
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Gold prices are expected to soar to new heights in the coming year. Analysts predict that gold prices could remain above the $2,000 levels due to various factors such as geopolitical uncertainty, a weaker U.S. dollar, and potential interest rate cuts. The Israel-Hamas conflict has already boosted the demand for the safe haven asset, leading to two consecutive months of rising gold prices. With the expected interest rate cuts, gold prices are expected to receive further support. Investing in gold could be a wise decision for those looking for a secure investment option in these uncertain times. #interest rates#gold prices
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June 13th, 2024 Gold prices saw a slight decline on Thursday after the U.S. Federal Reserve projected only one interest rate reduction for this year, disappointing investors who hoped for two cuts. Despite this, a cooler-than-expected inflation report moderated the decline. Spot gold decreased by 0.2% to $2,317.38 per ounce, as of 1053 GMT, while U.S. gold futures dropped 0.9% to $2,333.10. According to Carlo Alberto De Casa, a market analyst at Kinesis Money, "The market is still digesting a quite intense Wednesday, with U.S. inflation data providing support for gold, while the Fed's hawkish stance kept prices in check." The Fed held rates steady and forecasted only one rate cut in 2024, despite some progress in inflation. Growth and unemployment levels remain better than what the U.S. central bank considers sustainable in the long run. Inflation data indicated the consumer price index was surprisingly flat in May, sending gold prices up by as much as 1% before settling to a 0.3% increase by the end of Wednesday. The Fed is expected to hold off on any action until there is a more convincing decline in price pressures or a significant rise in the unemployment rate. Last week, gold prices saw their biggest sell-off since November 2020, driven by a strong U.S. jobs report and China's central bank pausing its gold purchases. "Despite this, gold remains above $2,300/Oz, suggesting that investors are still viewing corrections and dips as opportunities to bolster their gold holdings," De Casa noted. Gold's surge to successive record highs is likely to continue in the latter half of 2024, with the fundamental case for bullion remaining robust, though $3,000 per ounce appears slightly out of reach, as per traders and industry experts. Additionally, spot silver dropped 1.4% to $29.28 per ounce, platinum fell 1.6% to $948.25, and palladium decreased 1.3% to $894.97.
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