Gold price hovers around two-week low as interest rate cut forecasts fade

Gold price hovers around two-week low as interest rate cut forecasts fade
Gold price hovers around two-week low as interest rate cut forecasts fade

Gold prices rose slightly on Monday but remained near a two-week low reached in the previous session as investors reduced their expectations for a cut in U.S. interest rates after the The Federal Reserve’s latest meeting indicated that a delay in monetary policy easing was likely.

FUNDAMENTALS

* Spot gold rose 0.2% to $2,338.85 an ounce, as of 0211 GMT. Prices hit their lowest level since May 9 at $2,325.19 on Friday.

* US gold futures were up 0.3% at $2,340.20.

* Bullion hit a record high of $2,449.89 early last week, but has lost more than $100 since.

* Fed officials indicated that it would take longer than expected to be more confident that inflation is moving towards 2%, according to the minutes of the meeting of the US central bank which took place held from April 30 to May 1.

* Traders’ bets indicated growing doubt that the Fed will cut rates more than once in 2024, currently estimating a 62% chance of a rate cut by November, according to the CME FedWatch tool.

* Bullion is known to be a hedge against inflation, but higher rates increase the opportunity cost of holding gold without a yield.

* At least five people have been killed and several others are missing after an informal gold mine collapsed in northern Kenya, according to authorities and local media.

* BHP’s resolve to add more copper to its portfolio will be tested by Anglo American investors who are demanding a simpler offer for the entire company or a cash bonus to secure a deal that could become the largest in the history of the mining industry.

* Profits of Chinese industrial companies rose 4.3% in the first four months compared with the same period last year, official data showed.

* Spot silver rose 0.8% to $30.59 an ounce, platinum rose 1.2% to $1,037.90 and palladium gained 1.6% to 979.25 dollars.

DATA/EVENTS (GMT) 0800 Germany Ifo business climate new May 0800 Germany Ifo current conditions new May 0800 Germany Ifo expectations new May

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