Gold slips as US dollar strengthens, investors await Fed officials comments; silver trades flat
Gold and silver prices today on 07-05-2024: Check latest rates in your city On Monday, spot gold prices gained almost 1% on Monday amid softer dollar and decline in US treasury yields. Friday’s weaker than expected US jobs report fueled expectation of potential rate cuts later this year. Further, safe haven buying due to the ongoing tension in the Middle East also supported the bullions to trade higher.
The precious metal surged to an all-time peak of $2,431.29 on April 23, 2024, driven by robust acquisitions by central banks and heightened demand from Chinese retail investors, amid escalating geopolitical tensions. Data from China's central bank revealed that it added 60,000 troy ounces of gold to its reserves in April, marking the 18th consecutive month of purchases despite elevated prices. Investors are eagerly awaiting remarks from Federal Reserve officials scheduled to speak this week, including Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, later in the day.
Thomas Barkin, President of the Federal Reserve Bank of Richmond, commented on Monday that the current level of interest rates should sufficiently moderate economic activity to bring inflation back to the central bank's 2% target. According to the FedWatch Tool by CME, traders in Fed funds futures markets are pricing in approximately a 66% likelihood that the U.S. central bank will commence rate cuts in September.
Back home, gold prices rose by ₹200 to reach ₹72,450 per 10 grams in the national capital on Tuesday, continuing their upward trajectory for the second consecutive session. This increase aligns with the strong performance observed in the global markets, as reported by HDFC Securities. Also read: China's gold consumption rose 6%
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