Gold prices rise on prospects of US interest rate cut amid robust jobs data
Date
5/12/2024 9:29:22 AM
(MENAFN) Gold prices experienced a notable surge yesterday, marking their strongest weekly performance as investors reacted to US jobs data and heightened expectations of interest rate cuts by the Reserve Board, the US central bank. Spot gold prices rose by 0.71 percent to USD2,362.49 per ounce, while US gold futures for June delivery also recorded a substantial increase of 1.26 percent to USD2,369.60 per ounce. The bullish sentiment surrounding gold was further fueled by recent data indicating a larger-than-expected increase in the number of Americans filing new applications for unemployment benefits last week.
The positive momentum in the gold market was driven by investors closely monitoring economic indicators, particularly the upcoming releases of the Producer Price Index and Consumer Price Index data in the United States. These key economic indicators are expected to provide further insights into inflationary pressures and consumer spending trends, thereby influencing the trajectory of gold and silver prices in the near term.
While gold prices soared, silver experienced a modest decline in spot transactions, dropping by 0.47 percent to USD28,203 per ounce. In contrast, platinum witnessed a notable increase of 1.63 percent to USD993.90 per ounce, while palladium rose by 1.71 percent to USD983.50 per ounce. The varied performance of precious metals reflects the dynamic nature of commodity markets and the diverse factors influencing investor sentiment.
Overall, the surge in gold prices underscores the growing uncertainty surrounding global economic conditions and monetary policy outlook. With investors eagerly awaiting key economic data releases, market dynamics are expected to remain fluid, with gold prices likely to continue responding to shifts in sentiment and macroeconomic trends in the coming weeks.
MENAFN12052024000045015682ID1108203012
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.