Tuesday, 28 May 2024

Gold near an all-time high after strong data

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Gold prices hovered on Tuesday below the record level they recorded in the previous session, with the dollar and Treasury bond yields holding steady after strong US data raised doubts about whether the Federal Reserve (US central bank) would cut interest rates three times this year.

By 0624 GMT, gold rose in spot trading 0.2% to $2,253.94 per ounce, remaining below its all-time high of $2,265.49, which it recorded on Monday. US gold futures rose 0.8% to $2,274.60 an ounce.

According to “Reuters,” Tim Waterer, chief market analyst at KCM Trade, said, “Gold recorded a new record price, and with this high level, some indications of exaggerated pricing also appeared, which led to a modest decline.” But the recent declines in gold were minor in nature due to potential buyers waiting on the sidelines for better opportunities to return.”

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Gold’s gains were undermined with the dollar rising to its highest level in four and a half months, while benchmark ten-year US Treasury bond yields are trading near their highest levels in two weeks after data showed the US manufacturing sector grew for the first time in a year and a half during the month. March.

Federal Reserve Chairman Jerome Powell said on Friday that the latest inflation data did not impact the central bank’s baseline outlook, but said the strength of the economy “means we do not need to rush to cut.”

“Traders will await the release of the non-farm payrolls report in the United States on Friday, because if we see another strong jobs report, this may provide an incentive for gold to rebound,” Waterer said.

Gold usually rises as interest rates are lowered because this reduces the opportunity cost of holding bullion.

As for other precious metals, silver rose 1.1 percent to $25.37 per ounce, platinum increased 0.6 percent to $907.45, and palladium rose 1.2 percent to $1,008.44.

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