Gold Steady as Traders Weigh US Economy, Rate Cut Directions
Gold steadied and was set for a moderate weekly loss as investors assessed the outlook for Federal Reserve rate cuts after resilient US jobs and retail data eased concerns about the economy.
Bullion traded below $3,340 an ounce, heading for a 0.5% drop on the week. That came after data that showed applications for unemployment benefits fell for a fifth straight week to the lowest level since mid-April, and advancing retail sales in June.
San Francisco Fed President Mary Daly said it’s reasonable for policymakers to plan on two interest-rate cuts this year, emphasizing that the central bank should not wait too long before acting. Pressure is mounting on the central bank’s leadership from US President Donald Trump to ease policy and over an expensive renovation of the Fed’s headquarters.
Traders will watch for the outcome of a gathering of Fed officials at the end of this month to get a clearer sense of their policy direction. Gold is typically disadvantaged in a high rate environment as it doesn’t offer interest.
Despite the recent lack of momentum, gold has climbed more than a quarter this year, with geopolitical tensions and concerns about dollar-denominated assets sparking flight to the haven. The metal has been trading within a tight range over the past few months, as investors wait for a clearer sense on US talks with a raft of trade partners, the path for rate cuts, and the impact of tariffs on the global economy.
Gold was little changed at $3,339.57 an ounce at 1:22 p.m. Singapore time. The Bloomberg Dollar Spot Index edged lower. Silver was also steady. Platinum edged lower but remained close to the highest in a decade. Palladium rose to the highest in nearly two years.
Source : Bloomberg
