Slight recovery in the price of gold
The price ofgold rose slightly on Tuesday, boosted by falling Treasury bond yields and investor expectations for U.S. economic data and statements from Federal Reserve officials.
Also read: Gold heading for a new price record?
At 0326 GMT, spot gold rose 0.2% to $2,323.97 an ounce, while US gold futures rose 0.4% to settle at $2,339.00.
Today, the price of a gram of 18-carat gold is estimated at €69.62 (06/18/2024) (prices constantly changing).
Bond yields falling
Yields on 10-year Treasury bonds have fallen slightly, making gold more attractive to investors. Meanwhile, the dollar remained stable. A senior analyst commented: “The fact thatgold has fluctuated over the last four days without a clear direction shows that the market is waiting for a major event to break out of this period of calm. A decline in US retail sales could allow gold to cross the $2,350 mark.”
Waiting for economic data
Investors are paying attention to economic data due later in the day, including US retail sales at 1230 GMT, followed by weekly jobless claims on Thursday and flash purchasing managers’ indices on Friday. Recent data has shown labor market moderation and inflationary pressures.
Statements from Fed officials
The president of the Philadelphia Fed said Monday that he favors a one-time rate cut, while leaving the door open to a revision based on new data. Later in the day, several other Fed officials, including Austan Goolsbee of Chicago and Thomas Barkin of Richmond, will speak.
Interest rate outlook
According to the CME Group’s FedWatch tool, the probability of an interest rate cut in November is 76%. A fall in rates reduces the opportunity cost of holding bullion with no yield, making thegold more attractive.
Performance of other metals
Looking at other precious metals, spot silver was flat at $29.49 per ounce. Platinum rose 1.2% to $976.15, while palladium rose 0.7% to $894.64 an ounce.
