Gold Futures Flat as U.S. Economic Data Offsets Safe-Haven Demand
Gold futures are broadly flat amid mixed macroeconomic signals. Futures are flat on $3,344.50 a troy ounce. The precious metal is up more than 23% year to date, though its rally has slowed as crucial U.S. data points to a stronger-than-expected U.S. economy. Friday's nonfarm payroll data showed falling long-term unemployment, reducing inflation concerns and pressure on the Federal Reserve to ease monetary policy, XMarabia's Nadir Belbarka says in a note.
That said, political pressure is adding volatility to interest-rate expectations, Belbarka writes. President Trump urged a 100 basis point rate cut on Saturday and attacked Fed Chair Jerome Powell, reigniting concerns of political interference in the central bank, Belbarka says. Perceived risk to the central bank's autonomy has fueled demand for gold as a geopolitical as well as monetary hedge, he adds.
Source: Bloomberg
