Gold prices rose for the second consecutive session on Tuesday. This increase comes as traders grow increasingly optimistic about a potential Federal Reserve rate cut later this year. Spot gold was up 0.2% at $2,327.11 per ounce early this morning, while U.S. gold futures also saw a 0.2% rise to $2,336.20.
Picture: Gold prices hike on VT Markets trading app.
Recent data revealed that U.S. job growth in April was slower than expected, and the increase in annual wages dropped below 4% for the first time in nearly three years.
These indicators have contributed to the growing sentiment that the Fed might lower interest rates to support the economy.
In global geopolitics, tensions in the Middle East are under close watch. Despite a ceasefire proposal from mediators, Israel has stated that the terms do not meet its requirements and has continued strikes in Rafah while negotiations persist. Such geopolitical tensions often increase the appeal of gold as a safe-haven asset.
Also read: 4 reasons why traders flock to safe-haven gold during global political tensions
The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a slight increase in its holdings, further reflecting the heightened investor interest in gold.
In the metals market, while spot silver dipped slightly by 0.1% to $27.44 per ounce, both platinum and palladium experienced gains. Platinum rose by 0.5% to $958.90 per ounce, and palladium increased by 0.4% to $981.34 per ounce.
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As the market landscape evolves, influenced by both economic indicators and geopolitical developments, the opportunity to capitalise on these movements grows. Now is an ideal time to harness these dynamics in gold and other metals markets.
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