Gold Gains as Investors Anticipate Super-Sized Fed Rate Cut
Gold prices rose to near one-week highs on Thursday, on the back of a weaker U.S. dollar and lower yields after signs of labour market losing steam led investors to expect a super-sized rate cut from the Federal Reserve this month.
Spot gold was up 0.9% at $2,515.93 per ounce by 2:03 p.m. ET (1803 GMT), rising as much as 1.1% earlier in the session. Prices slightly pared gains after the U.S. services sector data.
U.S. gold futures settled 0.7% higher at $2,543.10.
U.S. private employers hired the fewest number of workers in 3-1/2-years in August, potentially hinting at a sharp labour market slowdown. This follows data on Wednesday showing a sharp decline in U.S. job openings in July.
Traders currently see a 59% chance of a 25-basis-point (bp) reduction by the U.S central bank this month and a 41% chance of a 50-bp cut, according to the CME FedWatch tool,.
Attention turns to the upcoming non-farm payrolls (NFP) report on Friday.
Elsewhere, spot silver gained 1.9% to $28.82, platinum climbed 2.7% to $926.74 and palladium rose 0.9% to $942.36.
Source : Reuters
