Gold prices pared gains Friday after rising over 1% previously, with a focus on key US inflation data for Fed policy clues.
Gold prices pared some of its gains on Friday after rising more than 1% in the previous session with the spotlight shifted to key US inflation data for clues on the Fed's policy path.
Bullion tumbled to its lowest level since 10 June on Wednesday amid risk-on mood. Major stock indexes on Wall Street have hit fresh record highs earlier this week, led by semiconductor stocks.
But ebbing economic momentum helped spur a significant rally. In its third estimate of GDP, the US government confirmed that economic growth moderated sharply in Q1.
Almost 60% of rich countries’ central banks believe that gold’s share of global reserves will rise in the next five years, according to the WGC. About 13 % of them plan to increase their gold holdings next year.
The demand highlights how allocations to the greenback have been declining as the institutions have sought to diversify their holdings, especially after the US weaponised its currency in sanctions.
The consecutive years of record buying, the pace of which has continued into this year, has been a driving factor behind gold’s bull run. The Chinese renminbi also gain traction despite its economic uncertainty.
The yellow metal is well supported by the key psychological level at $2,300. Initial resistance lies around $2,350 and a break above the level could propel it forward to the monthly high.
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US job growth in July slowed more than expected, raising fears of a broader economic slowdown and causing risky assets to tumble throughout the month.
2024-09-06Oil prices rose slightly on Friday, as investors balanced a large US crude inventory draw and OPEC+ production delays with mixed US employment data.
2024-09-06Bullion steadied Thursday below $2500 after a market sell-off. It is expected to remain near this level until the NFP report is released.
2024-09-05