Mumbai, 21 Jun (Commoditiescontrol): Gold prices held steady on Friday but are poised for their second consecutive weekly gain, driven by weak U.S. economic data that bolstered expectations of a Federal Reserve interest rate cut this year.
Spot gold remained virtually unchanged at $2,358.31 per ounce, while U.S. gold futures inched up 0.2% to $2,372.90 per ounce. Prices hit a two-week high on Thursday, marking their highest level since June 7, with bullion gaining 1.2% for the week so far.
Recent data indicated a slowdown in the labor market and persistent price pressures, followed by soft retail sales figures on Tuesday. These reports suggest that economic activity has been moderate in the second quarter.
First-time applications for U.S. unemployment benefits fell slightly last week, while new housing construction dropped to its lowest level in nearly four years in May, further highlighting the tepid economic environment.
Investors are now keenly awaiting the flash purchasing managers' indexes due at 0145 GMT, which could provide more insight into the economy's strength.
Traders are currently pricing in about a 64% chance of a Fed rate cut in September, according to the CME FedWatch Tool. Lower interest rates typically reduce the opportunity cost of holding non-yielding bullion, making gold more attractive.
In other metals, spot silver dipped 0.5% to $30.56 per ounce. Platinum rose 0.3% to $981.00, and palladium also increased by 0.3% to $926.00.
Additionally, Uzhuralzoloto, Russia's fourth-largest gold producer, announced it would hold a secondary public offering on the Moscow Exchange in June, further contributing to the market's activity.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
