Gold prices remained stable on Friday, maintaining momentum for a second consecutive weekly gain. This trend is driven by weak economic data from the U.S., which has bolstered expectations that the Federal Reserve may cut interest rates this year.
Spot gold held steady at $2,358.31 per ounce as of 0139 GMT, while U.S. gold futures edged up 0.2% to $2,372.90. On Thursday, prices hit a two-week high, their highest level since June 7. For the week, bullion has gained 1.2%.
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Recent data indicates a moderation in the labor market and price pressures, alongside soft retail sales figures, suggesting lackluster economic activity in the second quarter.
First-time applications for U.S. unemployment benefits fell moderately last week, while new housing construction dropped to its lowest level in nearly four years in May. These indicators point to a moderate level of economic activity.
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Investors are now focused on the flash purchasing managers’ indexes due at 0145 GMT, which could provide more insights into the economy’s strength. Traders are currently pricing in about a 64% chance of a Federal Reserve rate cut in September.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion, making gold more attractive to investors. This dynamic has supported gold prices amid speculation about the Fed’s next moves.
In other precious metals, spot silver fell 0.5% to $30.56 per ounce. Platinum was up 0.3% at $981.00, and palladium gained 0.3% to $926.00.
Uzhuralzoloto, Russia’s fourth-largest gold producer, announced plans for a secondary public offering on the Moscow Exchange in June. This move could impact the global gold market by increasing supply.
Gold’s steady performance amid weak U.S. economic data highlights its role as a safe-haven asset in times of economic uncertainty. Investors will be closely watching upcoming economic indicators and Federal Reserve signals for further direction in the precious metals market.
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