Gold prices recover as weak US jobs data boosted expectations of Federal Reserve rate cut
(MENAFN) Gold prices rebounded on Wednesday, recovering from earlier losses due to a weaker dollar and reduced expectations of a Federal Reserve interest rate cut following disappointing U.S. jobs data. By 15:35 GMT, spot gold increased by 0.1 percent to USD2,494 per ounce, recovering from a two-week low of USD2,471.80 reached earlier in the day. U.S. gold futures also saw a slight gain, rising 0.1 percent to USD2,525.70.
The decline in U.S. job openings, which fell to their lowest level in three and a half years in July, has fueled speculation that the Federal Reserve may implement a significant interest rate cut at its upcoming policy meeting scheduled for September 17-18. According to Peter A. Grant, vice president and chief metals strategist at Zaner Metals, the market anticipates a 100 basis point cut by the end of the year, which implies a 50 basis point reduction in one of the next three Federal Open Market Committee (FOMC) meetings. This anticipated lower interest rate environment would be supportive of non-yielding assets like gold.
In addition to gold, other precious metals also saw movements. Silver prices rose by 0.5 percent to USD28.19 per ounce, while platinum increased by 0.7 percent to USD909.57. However, palladium experienced a slight decline of 0.1 percent, trading at USD937.25.
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