Spot Gold hovered near all-time highs on Thursday as minutes from the U.S. Federal Reserve’s latest meeting cemented expectations of a September interest rate cut, with traders now awaiting Chair Jerome Powell’s speech for insights on rate outlook.
FUNDAMENTALS
- Spot gold was flat at $2,511.80 per ounce, as of 0030 GMT, trading below a record high of $2,531.60 hit on Tuesday.
- U.S. gold futures were also flat at $2,548.50.
- Minutes from the Fed’s July 30-31 meeting showed that officials were strongly inclined toward a rate cut next month.
- Traders have fully priced in easing by the Fed at the September meeting, with a 62% chance of a 25 bps cut, according to CME FedWatch tool. A low interest rate environment tends to boost non-yielding bullion’s appeal.
- The Fed minutes pave the way for the Jackson Hole Economic Symposium starting Thursday, with Fed Chair Jerome Powell set to speak on Friday.
- Additionally, the Bureau of Labor Statistics revised payrolls in the April 2023-March 2024 period to show a 0.5% reduction in jobs, equivalent to 818,000. This was at the higher-end of market estimates of up to one million fewer jobs.
- The market will now be looking for initial jobless claims data due at 1230 GMT.
- SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.07% to 856.70 tonnes on Wednesday.
- Elsewhere, Israel has not agreed to withdraw its troops from the Philadelphi corridor on the Egypt-Gaza border, Prime Minister Benjamin Netanyahu’s office said on Wednesday.
- Spot silver edged 0.2% lower to $29.56 per ounce, platinum gained 0.4% to $967.25 and palladium fell 0.1% to $950.57.
- Crude Oil prices tick down as hopes of Middle East ceasefire eases supply worries
- Gold price dips Rs 10 to Rs 72,760, silver falls Rs 100 to Rs 85,800
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