Gold Prices Are Rising Again: What’s Behind the Trend
2 July 16:02
Gold prices are rising on Thursday, July 2, amid weak U.S. labor market data, falling oil prices, and comments from the Fed chair regarding easing inflation risks, while the market awaits the release of key U.S. labor statistics, "Komersant Ukrainian" reports, citing Reuters.
The spot price of gold rose 0.88% to $4,065.29 per troy ounce, having reached its highest level since June 23 the previous day.
“The precious metal is rebounding today following less hawkish remarks by Federal Reserve Chair Kevin Worsh at the ECB forum,” said Nikos Tsabouras of Tradu.com.
Traders are pricing in a 63% probability of a rate hike by September, according to the CME’s FedWatch tool.
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The market’s focus will be on U.S. jobs data, scheduled for release at 4:30 p.m. Kyiv time—investors are hoping for clues about the trajectory of the Fed’s interest rates.
Any noticeable weakness in these figures could push gold toward the $4,250 level, though that would not be enough to pull it out of bear territory, Tsaburas said.
“Any figure above 100,000 jobs will likely be enough to sustain expectations of a Fed rate hike and keep gold vulnerable to a deeper decline toward $3,500.”
Palladium rose 3.02% to $1,246.5 per ounce. Silver gained 1.19% to $59.83 per ounce. The price of platinum rose 2.47% to $1,615.75.
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