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Gold prices rise due to rate cut speculation and economic data

10th May 2024 – On Friday, spot gold experienced a slight increase of 0.1% to $2,347.98 per ounce, contributing to a 2% rise over the week. This upward movement is closely tied to traders’ adjusted expectations for an interest rate cut from the Federal Reserve, anticipated to begin as early as September. U.S. gold futures also reflected this optimism, rising 0.6% to $2,354.10. The shift in market sentiment was largely prompted by the latest U.S. economic data released on Thursday, which showed an unexpected rise in new unemployment claims. This data is seen as a sign of a cooling labour market, reinforcing the case for upcoming rate cuts. The financial markets are now keenly awaiting the University of Michigan’s consumer sentiment index and next week’s consumer price index data, which could provide further insights into the economic trajectory and influence Fed decisions.

Publication date:

2024-05-10 07:01:47 (GMT)

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