(MENAFN) During early Thursday trading, gold prices exhibited minimal fluctuations within a narrow range as investors directed their attention towards forthcoming US economic indicators that could shed light on the Federal Reserve's potential timeline for interest rate adjustments. Spot gold saw a modest uptick of 0.2 percent, reaching USD2,314.26 per ounce, while US gold futures experienced a slight decline of 0.1 percent, settling at USD2,321.
Market sentiment remains influenced by key economic data releases, with the weekly US unemployment claims report slated for release at 1230 GMT, followed by the University of Michigan Consumer Confidence Index reading scheduled for Friday. Additionally, anticipation surrounds the forthcoming release of consumer price index data next week, further contributing to market speculation.
Ajay Kedia, director of Kedia Commodities in Mumbai, remarked on the cautious stance adopted by gold traders amidst expectations of an interest rate cut by the Federal Reserve in September. Kedia emphasized that significant price movements are tempered by this cautious sentiment, noting that a higher-than-expected US inflation report could potentially drive prices down to USD2,290.
The prevailing sentiment among traders, as indicated by CME's Fed Watch tool, suggests a 66 percent expectation for US interest rate cuts in September. Such expectations are rooted in the belief that lower interest rates would diminish the opportunity cost associated with holding gold, thereby potentially bolstering demand for the precious metal.
In parallel, other precious metals also experienced varying degrees of movement in spot transactions: silver rose by 0.7 percent to USD27.53, platinum saw an increase of 0.8 percent to USD982.10, and palladium registered a modest uptick of 0.5 percent, reaching USD956.13. These fluctuations underscore the intricate dynamics influencing the broader precious metals market amidst ongoing economic uncertainties and speculation surrounding central bank policies.
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