A slight rise in gold thanks to falling yields
The gold price saw a slight increase on Monday, supported by the decrease in Treasury yields. Investors are awaiting crucial U.S. inflation data and statements from Federal Reserve officials, hoping for clues on the possible timing of interest rate cuts.
Also read: Gold aims for new highs this week!
Key figures and market reactions
Spot gold rose 0.2%, hitting $2,325.53 an ounce at 03:33 GMT, after falling more than 1% last Friday.
Today, the price of a gram of 18-carat gold is estimated at €69.74 (06/24/2024) (prices constantly changing).
US gold futures, meanwhile, rose 0.3% to $2,338.10. The decline in 10-year U.S. Treasury yields has made non-yielding bullion more attractive to investors.
A financial market analyst explained: “Friday-Saturday night saw heavy selling due to the strength of the US dollar. Gold was hit to some extent, although markets are expecting two rate cuts this year.”
The strong dollar and its implications
In June, U.S. economic activity reached its highest level in 26 months, with a significant rebound in employment, pushing the dollar to its nearly eight-week high. A strong dollar makes bullion more expensive for holders of other currencies, thus impacting the gold market.
Waiting for US inflation data
Traders are closely watching the U.S. Personal Consumer Expenditures (PCE) Price Index report, scheduled for Friday. This index is the Fed’s preferred measure of inflation and could provide valuable guidance on the timing and magnitude of interest rate cuts.
According to one analyst, “If the PCE index continues to fall, it could confirm that the Fed is able to cut rates twice this year. And if that’s the case, that will be quite positive for gold. “
Expected speeches from Fed officials
At least five Fed officials are scheduled to speak this week, including San Francisco Fed President Mary Daly, as well as Governors Lisa Cook and Michelle Bowman. Their comments will be scrutinized for any additional indications on future monetary policies.
Performance of other precious metals
In the precious metals market, spot silver rose 0.2%, reaching $29.59 per ounce. Platinum was steady at $992.45, while palladium gained 0.5%, rising to $953.46.
