2024-03-05 04:30:00
Gold hovers near 3-month peak and focus on Powell’s testimony
Gold prices moved near their highest level in 3 months, during early Tuesday trading, supported by weak spending on manufacturing and construction industries in the United States, while investors await the testimony of Federal Reserve Chairman Jerome Powell (the US central bank) and the main jobs data scheduled for release this week.
The London Bullion Market Association said that the London gold price index reached an all-time high of $2,098.05 per ounce at an auction on Monday afternoon, surpassing the previous record of $2,078.40 recorded on December 28.
The market’s focus is on US Central Bank Chairman Jerome Powell’s testimony before Congress on Wednesday and Thursday.
Other economic data is expected to be released this week that may contribute to determining the direction of US interest rate cut expectations, including services data from the Institute for Supply Management at 1500 GMT, the Job Opportunities and Labor Turnover Survey, on Wednesday, and the Non-Farm Payrolls report on Friday.
Data last week showed US manufacturing declined further in February and inflation gradually declined, while consumer sentiment remained weak.
Atlanta Federal Reserve Bank President Rafael Bostic said yesterday, Monday, that the Federal Reserve is not under urgent pressure to cut interest rates in light of the “booming” economy and labor market, in statements that highlighted the risk that inflation will remain above the central bank’s target of two percent or rise. Even more so through “pent-up exuberance.”
Traders now see a 65 percent chance of a cut in US interest rates in June, according to LSEG’s interest rate forecasting app.
Lower interest rates would increase the demand for buying bullion that does not generate returns.
Change in prices
Gold fell in instant transactions by 0.1 percent to $2,112.39 per ounce, by 0230 GMT, but it hovered near Monday’s levels of $2,119.69, which is its highest level since the fourth of December. US gold contracts fell 0.3 percent to $2,120.50.
As for other precious currencies, platinum fell 0.7 percent to $890.90 an ounce, and palladium fell nearly one percent to $951.12. Silver fell 0.9 percent to $23.68.
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