Gold prices rose on Friday and are on track for a weekly gain as recent economic data prompted traders to increase bets on an interest rate cut from the Federal Reserve later in the year. ‘year.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,347.98 an ounce, by 0046 GMT. Bullion prices have increased by 2% since the start of the week.
* US gold futures rose 0.6% to $2,354.10.
* Data on Thursday showed that the number of Americans filing new claims for unemployment benefits rose more than expected last week, offering further evidence that the job market is steadily cooling.
* Financial markets expect the Fed to begin its easing cycle in September. Lower interest rates reduce the opportunity cost of holding gold.
* Focus now shifts to consumer sentiment from the University of Michigan at 1400 GMT and Consumer Price Index data due next week.
* There is “considerable” uncertainty over the direction that US inflation will take in the coming months, San Francisco Fed President Mary Daly said on Thursday, while adding that she still has confidence in the means that price pressures continue to ease.
* Separately, a senior Israeli official said on Thursday that the latest round of indirect negotiations in Cairo to end hostilities in Gaza had ended and that Israel would continue its operation in Rafah and other parts of the Gaza Strip as expected.
* Spot silver fell 0.1% to $28.31 an ounce, but was on pace to record its best week in five years.
* Platinum firmed 0.8% to $985.40 and palladium rose 0.1% to $968.25. Both metals were on track for weekly gains.
DATA/EVENTS (GMT)
0600 UK GDP estimate, Prelim March
0600 UK Manufacturing production MM March
1130 Germany Publication of the account of the
monetary policy meeting of
Governing Council of the European Union
European Central Bank which was held on April 10 and 11
1400 US U Mich Sentiment Prelim May (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu)
