**Gold poised for Second Straight Weekly Rise**
Gold prices are set for a second consecutive weekly increase, supported by a weakening U.S. dollar. The anticipation of the nonfarm payrolls data is also influencing the market, providing insights into the Federal Reserve’s potential rate cut timeline.
**Market Trends and Analysis**
Spot gold saw a 0.4% increase to $1,364.87 per ounce and reached a two-week high at $2,367.99. U.S. gold futures also rose by 0.2% to $2,372.90. Despite minimal trading activity due to the Independence Day holiday in the U.S., the upward trend in gold prices is attributed to recent weak economic data causing a decline in the U.S. dollar, making gold more appealing to investors holding other currencies.
**Impact of Economic Data and Dollar Movement**
Recent reports indicated a decrease in U.S. service sector activity, hinting at a slowdown in the country’s economy. The weakening U.S. dollar throughout the week has bolstered gold prices, attracting buyers from other currency markets.
**Anticipation of Fed Rate Cuts and Market Sentiment**
Investors are eagerly awaiting the nonfarm payrolls report scheduled for 1230 GMT. Speculation suggests a potential interest rate cut by the Federal Reserve in September, with expectations of another cut in December. Lower interest rates decrease the opportunity cost associated with holding non-yielding assets like gold.
**Insight into Gold Demand and Market Observations**
Central bank purchases have supported gold demand in early 2024, with a focus on diversifying assets in their reserves. This strategic move has contributed to the stability and strength of the gold market.
**Silver, Platinum, and Palladium Performance**
Aside from gold, spot silver marked a 0.5% increase to $30.54, heading for its most robust performance week since May 17. Platinum rose by 0.4% to $1,006.10, while palladium gained 0.6% to $1,023.48, achieving its third consecutive weekly gain.
Overall, the precious metals market is showing resilience and promise amidst shifting economic conditions and monetary policy speculations.
(Reporting by Daksh Grover in Bengaluru; Editing by Eileen Soreng)
