Gold climbs 1% to two-week high on increased Fed rate cut expectations; silver rises 2%
₹72,000, as US participants returned from the Juneteenth holiday with a buying sentiment. This was driven by weak retail sales data and lower inflation figures.
Expectations for a rate cut in September are growing, but if any Fed members hint at a delay beyond September, profit booking in gold is likely. The current support levels are reinforced by economic data.
S of prolonged higher rates could trigger selling pressure," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.Data indicated a decline in U.S. jobless claims in the latest week, suggesting a relatively steady market.
Meanwhile, U.S. single-family homebuilding decreased by 5.2 per cent to a seasonally adjusted annual rate of 982,000 units in May.Recent figures highlighted a slowdown in t and inflationary pressures.
Subdued retail sales data on Tuesday also indicated sluggish economic activity in the second quarter.According to the CME FedWatch Tool, traders are currently factoring in approximately a 64 per cent probability of a Fed rate cut in September. Decreased interest rates lower the opportunity cost of holding non-yielding gold.The rally in gold prices from March to May, reaching a peak of $2,449.89 on May 20, was fueled by safe-haven demand amid geopolitical and economic uncertainties, along with ongoing central bank purchases.Among other precious metals, spot silver increased by 2.1 per cent to $30.37 per ounce, platinum decreased slightly by 0.1 per cent to $979.45, and palladium rose by 1.7 per cent to $920.Milestone Alert!
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