Gold Slips To Over 1-Week Low As Dollar Firms, Investors Await More Fed Cues
Date
7/22/2024 3:27:40 PM
(MENAFN- Khaleej Times)
Gold prices fell to a more than one-week low on Monday as the dollar firmed, while traders awaited more U.S. economic data and comments from federal Reserve officials this week for clarity on the timeline for interest rate cuts.
Spot gold fell 0.4% to $2,391.21 per ounce, as of 1635 GMT, while U.S. gold futures shed 0.3% to $2,392.60.
The dollar rose for a third straight session, making gold more expensive for other currency holders.
"We're seeing a quiet market today for gold" as "they're waiting to see what exactly the change in the democratic party's candidacy means for the election and for the country and the world overall," said Jeffrey Christian, managing partner of CPM Group.
Joe Biden on Sunday announced he was exiting the U.S. presidential race, and endorsed Vice President Kamala Harris as the Democratic candidate in the November election.
"It's far too early for any strategic positions... longer-term is probably more favourable for gold if Trump is in the White House," said StoneX analyst Rhona O'Connell in a note.
"Trump would be inflationary and potentially incendiary in geopolitical terms, while Harris' foreign affairs policy is as yet undefined so that favours gold for now, but not possibly in the longer term."
The market is now looking out for U.S. gross domestic product data for the second quarter on Thursday, as well as the personal consumption expenditure (PCE) data on Friday.
Money markets are fully pricing in a 25-basis-point Fed rate cut by September, according to CME's FedWatch data. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Gold prices scaled an all-time high of $2,483.60 per ounce last week on increased chances of U.S. interest rate cuts this year.
Spot silver fell about 0.7% to $29.06 after falling nearly 5% last week. Platinum slipped 1.6% to $947.63, while palladium fell 0.2% to $904.18.
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