Gold prices rose for a second time on Tuesday after recent economic data boosted bets the U.S. Federal Reserve will cut interest rates later this year.
FUNDAMENTALS
* Spot gold rose 0.2% to $2,327.11 an ounce, by 0034 GMT. U.S. gold futures firmed 0.2% to $2,336.20.
* Traders rate the likelihood of a Fed rate cut in September at 64%, according to the CME’s FedWatch tool. Lower rates increase the incentive to hold bullion without yield.
* Data on Friday showed that U.S. job growth slowed more than expected in April, while annual wage growth fell below 4.0% for the first time in nearly three years.
* Fed Bank of New York President John Williams said Monday that at some unspecified time the U.S. central bank will lower its target interest rate.
* Investors have closely followed the latest developments in the conflict in the Middle East. Palestinian militant group Hamas accepted a Gaza ceasefire proposal made by mediators on Monday, but Israel said the conditions did not meet its demands and continued strikes in Rafah while planning to continue negotiations with a view to reaching an agreement.
* The SPDR Gold Trust, the largest gold-backed exchange-traded fund, said its holdings rose 0.21% to 832.19 tonnes on Monday, from 830.47 tonnes on Friday.
* Spot silver fell 0.1% to $27.44 an ounce, platinum gained 0.5% to $958.90 and palladium rose 0.4% to $981.34 .
* A private sector survey showed on Monday that the expansion of services activity in China slowed slightly, but growth in new orders accelerated and business sentiment strengthened solidly.
DATA/EVENTS (GMT)
0030 Japan JibunBK Comp Op Final SA April
0030 Japan JibunBK SVC PMI Final SA April
0130 Australia Retail T1
0430 Australia RBA Cash Rate May
0600 Germany Industrial orders MM March
0600 Germany Manufacturing O/P Current prices SA March
0600 Germany Consumer goods SA March
0600 United Kingdom Halifax House Prices MM, YY April
0645 France Reserve assets Total April
0830 United Kingdom S&P Global PMI: MSC Composite Output April
