Gold’s decline and traders’ expectations
The price ofor posted a slight decline on Friday, but analysts are forecasting a third straight quarterly gain. Investors are awaiting data on theAmerican inflationexpected later today, to gain more clarity on the Bank’s interest rate cut timetable. Federal Reserve.
Also read: Gold is at risk today, be careful!
Current Gold Market Performance
At 03:54 GMT, thegold au counting fell 0.3% to $2,321.18 per ounce. However, prices increased by around 4% in the quarter. U.S. gold futures also fell 0.2%, hitting $2,331.90.
Factors influencing the rise of gold
The quarterly increase in gold is mainly explained by the increase in the possibilities ofmonetary easing in the USA. China also played a significant role by purchasing large quantities of gold for its reserves, supporting the market in the second quarter. The official data of the People’s Bank of China (PBOC) showed that its gold holdings remained stable in May, after 18 months of continuous increases.
Central bank forecasts
An investigation of World Gold Council revealed that more central banks could increase their gold reserves in the coming 12 months, further supporting the gold market.
Market reaction to economic data
Gold rose more than 1% in the previous session after data showed a moderate slowdown in U.S. economic activity, according to the tool. FedWatch of the CME, there is currently a 64% chance that the Fed cut interest rates for the first time in September.
Today, the price of a gram of 18 carat gold is estimated at €69.74 (06/28/2024) (prices constantly changing).
Federal Reserve Position on Interest Rates
Despite market expectations, the Fed Governor, Michelle Bowmanreiterated Thursday that it was not prepared to support a rate cut, with inflationary pressures still high.
Waiting for inflation data
The price index of personal consumption expenditure (PCE) in the United States, the Federal Reserve’s preferred measure of inflation, is due at 1230 GMT. A moderate set of (PCE) figures is needed to keep the Fed’s easing hopes alive and provide further support for gold, according to Matt Simpson, senior analyst at City Index.
Impact of interest rates on gold
Although gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding this asset without a yield.
Performance of other precious metals
L’cash money remained stable at $29.07, while the platinum gained 1.1% to $998.15. Both metals posted quarterly gains. THE palladium au cash rose 1.6% to $944.40.
