2023-09-07 09:34:11
The price of gold rose on Thursday, with a slight decline in bond yields offering some respite from dollar strength as investors eagerly await U.S. economic data to assess the outlook for interest rates. .
Spot gold was up 0.1% at $1,918.64 an ounce by 0906 GMT, after hitting a one-week low on Wednesday. US gold futures were little changed at $1,943.
“Very clearly, we’ve seen a reversal in US economic data from weakness to strength recently and that has once again added to the expectation that the Federal Reserve may not be done raising rates,” he said. Ole Hansen, head of commodities strategy at Saxo Bank.
“Furthermore, the dollar has hit new six-month highs…Gold remains very data dependent, we have the initial jobless claims later today, but the most important data will be the CPI (consumer price index) forecast next week.”
The US dollar remained near its highest level since March after the release of stronger than expected data on the services sector in the United States. Meanwhile, benchmark 10-year Treasury yields retreated from the two-week high reached in the previous session.
Boston Fed Chair Susan Collins on Wednesday called on the central bank to take its next monetary policy steps cautiously, while acknowledging signs of progress in cooling inflation.
According to CME tool FedWatch, traders see a 93% chance the Fed will leave rates unchanged at its September 19-20 meeting.
Rising US interest rates increase the opportunity cost of holding gold, which pays no interest.
U.S. economic growth has been “modest” in recent weeks amid slowing job growth and inflation in most parts of the country, according to the Fed’s “Beige Book” released on Wednesday .
Investors will keep an eye on US initial jobless claims data forecast at 08:30 EDT (1230 GMT) for clarity on labor market conditions.
Silver fell 0.3% to $23.10 an ounce, platinum fell 0.4% to $905.46 and palladium slid 1.4% to $1,198.05.
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