Gold on track to record its second consecutive weekly gain

Gold prices rose during today’s trading, amid strengthening hopes of the Federal Reserve reducing interest rates this year.

Economic data this week showed a slowdown in inflation in America during April, which strengthened hopes that the Federal Reserve would begin cutting interest rates later in 2024, according to Reuters.

In terms of trading, gold futures rose by about 0.2% to $2,390.1 per ounce, and are on track to record an increase of 0.7% so far this week.

Gold’s gains coincided with a 0.6% decline in the dollar index since the beginning of the week until now against competing currencies, which makes gold less expensive for holders of other currencies.

For his part, markets expert at IG Yip Jun Rong said that the upward trend in gold prices may continue, as the recent US economic data provides room for the US Federal Reserve to consider early cuts in interest rates in 2024 while geopolitical tensions continue.