Gold reached maximums in almost a month awaiting pause in rates

Gold reached maximums in almost a month awaiting pause in rates
August 31, 2023 – 00:00

The price of gold hit a nearly a month high yesterday as a fresh set of weaker-than-expected US economic data reinforced expectations that the US Federal Reserve may have to pause its rate hikes. interest.

Spot gold rose 0.4% to $1,943.92 an ounce, after hitting a high since Aug. 2 early in the session. Gold futures in the United States advanced 0.4% to $1,973.00.

“Gold is trading at month-highs as the lower-than-expected ADP report and GDP revision continue a trend of weaker economic indicators that will likely keep the Fed on hold in September,” Tai said. Wong, an independent metals trader in New York. The drop in job offers in the United States contributed to deteriorate the climate.

Bets on the Fed keeping rates on hold in September rose sharply, while bets on a November pause also rose, according to CME Group’s FedWatch tool.

Investors now await today’s PCE price index and tomorrow’s non-farm payrolls report.

US 10-year Treasury yields fell to their lowest level since August 11, while the dollar fell to a two-week low after the US GDP data.

Since bullion does not earn interest, it finds support when yields fall.

“Bad news for the economy will be good news for gold,” Ricardo Evangelista, a senior analyst at ActivTrades, said in a note.

Source: Ambito

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