Gold prices were steady on Tuesday as investors strapped in for US economic data this week for clarity on the timeline for Federal Reserve’s interest rate cut.
Gold price per tola increases Rs1,000 in Pakistan
Fundamentals
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Spot gold held its ground at $2,398.29 per ounce, as of 0035 GMT, after falling to a more than one-week low in the previous session. US gold futures edged 0.1% higher to $2,397.70.
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Traders will eye the report on gross domestic product (GDP) for the second quarter on Thursday and personal consumption expenditures (PCE) data for June on Friday.
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The Federal Open Market Committee (FOMC) will hold a two-day policy meeting on July 30-31. Markets have broadly priced in a 25-basis-point rate cut by September and two cuts by the year-end.
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Lower rates reduce the opportunity cost of holding bullion. * Chinese gold demand is now cyclically soft due to recent price surges, but central banks in emerging markets including China are likely to continue to buy gold frequently, whether disclosed or not, Goldman Sachs said.
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China surprised markets by cutting major short- and long-term interest rates on Monday, its first such broad move since last August, signalling intent to boost growth in the world’s second-largest economy.
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On the political front, US Vice President Kamala Harris, building Democratic backing for her sudden presidential run, rallied supporters on Monday with a debut campaign speech vowing to go after Republican nominee Donald Trump like the courtroom prosecutor she once was.
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Spot silver fell 0.5% to $29.06 per ounce, platinum firmed 0.1% at $948.13 and palladium lost 0.1% to $907.25.
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South Africa’s Anglo American Platinum (Amplats) said on Monday it has cut about 3,700 jobs to reduce spending ahead of a planned demerger from parent company Anglo American .
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