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Gold prices steady ahead of the release of US economic data

May 9, 2024

Key points:

  • U.S. jobless claims and consumer sentiment data are set to provide fresh economic insights.
  • Platinum faces its largest market deficit in a decade, influencing its pricing dynamics.

Gold prices stabilise as economic data looms

Gold prices held steady early Thursday, with spot gold priced at $2,309.23 per ounce. In contrast, U.S. gold futures saw a slight decrease of 0.2%, settling at $2,316.80. Investors are closely monitoring the upcoming U.S. economic reports, particularly the weekly jobless claims due at 1230 GMT today, and the University of Michigan’s consumer sentiment index due tomorrow. These reports could shed light on the economic landscape and influence the Federal Reserve’s rate decisions.

Picture: Gold prices remain steady as recorded on the VT Markets app.

Gold traders cautious despite Fed rate cut expectations

Despite the prevailing market sentiment leaning towards a rate cut by the Fed in September, gold traders remain cautious. The upcoming U.S. consumer price index data could be pivotal.

Fed Bank of Boston President Susan Collins emphasised that the U.S. economy might need to weaken to achieve the 2% inflation target.

This statement highlights the delicate balance the Fed seeks to maintain between fostering economic growth and controlling inflation.

Silver dips slightly as geopolitical factors remain key focus

Spot silver experienced a minor decline of 0.1%, pricing at $27.32. Geopolitical tensions continue to influence the market, particularly with ongoing negotiations over a ceasefire in Gaza.

The World Gold Council noted that factors like central bank demand and geopolitical premiums are crucial in supporting gold prices amidst current market challenges.

Picture: Silver prices decline as seen on the VT Markets app.

You might be interested: 4 reasons why traders flock to safe-haven gold during global political tensions

By keeping an eye on these economic indicators, geopolitical developments, and market dynamics, investors can better navigate the complexities of the precious metals market and adjust their investment strategies accordingly.

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