Gold Prices Fall Ahead of US Employment Data
Gold prices declined as investors awaited upcoming US employment data, which could impact the Federal Reserve’s decisions on rate cuts. The precious metal was trading below $2,500 an ounce after experiencing losses in the previous two sessions.
Insight: Market Speculation on Rate Cuts
Investors are closely watching the nonfarm payrolls data scheduled for release on Friday for clues about the Fed’s future actions regarding interest rates. Lower rates are generally seen as positive for gold, which does not offer interest payments.
“Gold stands out as the commodity where we have the highest confidence in near-term upside,” Goldman Sachs Group Inc. stated in a recent report, maintaining a target price of $2,700 per ounce for early 2025.
Additional Factors Driving Gold Prices
Gold has risen over 20% so far this year, supported by expectations of rate cuts, central bank buying, and safe-haven demand due to geopolitical tensions in regions like the Middle East and Ukraine.
- Spot gold was down 0.9% at $2,476.98 per ounce as of 10:23 a.m. in New York.
- The Bloomberg Dollar Spot Index increased, while the US 10-year Treasury yield decreased.
- Other precious metals such as palladium, platinum, and silver also experienced declines.
Overall, the outlook for gold prices remains influenced by a combination of economic data, geopolitical events, and central bank policies.
Source: BNN Bloomberg
