Gold shines as markets await US economic data

Gold prices rose on Monday as investors awaited important economic data and comments from Federal Reserve (US central bank) officials this week in search of more signs of lowering interest rates.

According to Reuters, by 1116 GMT, gold rose 0.3% to $2,171.42 per ounce. While silver rose 0.3% to $24.73.

US gold futures gained 0.6% to $2,172.50 an ounce.

Traders’ attention turns to data on new weekly unemployment claims scheduled to be released on Thursday, as well as data on the core personal consumption expenditures price index in the United States on Friday. Market reaction to PCE data may be delayed until next week due to the Good Friday holiday.

“(U.S. inflation readings) will have a big impact,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai. Any figure lower than expected for personal consumption expenditures will lead to a decline in the dollar and an increase in gold prices, and vice versa.”

Gold prices rose to their highest levels ever on Thursday after Federal Reserve Chairman Jerome Powell said they still expect to cut interest rates by three-quarters of a percentage point by the end of 2024.