Gold Prices Rise on Powell’s Rate Cut Comments
Gold prices inched higher on Tuesday following remarks by Federal Reserve Chair Jerome Powell, which strengthened the case for a September rate cut. Spot gold rose 0.1% to $2,423.89 per ounce as investors eagerly awaited more U.S. economic data for further monetary policy cues.
With a rate cut in September now fully expected by the markets, sentiments in gold prices continue to be well-supported. Powell’s comments on U.S. inflation readings over the past quarter indicate a potential turn to interest rate cuts, further driving bullish sentiment in the gold market.
Impact of Interest Rate Cuts on Gold Prices
As interest rates decline, the appeal of non-yielding assets like gold tends to increase. This dynamic often leads to a rise in gold prices during periods of monetary policy easing.
Market Watch: U.S. Economic Data and Fed Comments
Investors are closely monitoring U.S. retail sales data and upcoming comments from Fed governors Christopher Waller and Adriana Kugler for guidance on future monetary policy decisions. A weak retail sales report may reinforce market expectations of dovish Fed actions, while a breakthrough to new highs could signal a continuation of gold’s upward trend, potentially setting the stage for the $2,600 level.
Indian Platinum Imports and Metal Market Updates
In other news, India’s platinum imports surged in recent weeks, fueled by dealers registering alloys with high gold content as platinum to circumvent higher duties. Meanwhile, spot silver and platinum prices saw minor fluctuations, with palladium making modest gains.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
