GOLD prices edged up for a second session on Tuesday (May 7), after recent economic data boosted bets that the Federal Reserve would cut interest rates later this year.
Spot gold rose 0.2 per cent at US$2,327.11 per ounce, as at 0034 GMT. US gold futures firmed 0.2 per cent to US$2,336.20.
Traders are pricing in a 64 per cent chance of a Fed rate cut in September, as per CME’s FedWatch Tool. Lower rates increase the appeal of holding non-yielding bullion.
Data on Friday showed job growth in the US slowed more than expected in April, while the increase in annual wages fell below 4.0 per cent for the first time in nearly three years.
Fed Bank of New York president John Williams said on Monday that at some undefined point, the US central bank will lower its interest rate target.
Investors closely monitored the latest developments in the Middle East conflict. Palestinian militant group Hamas on Monday agreed to a Gaza ceasefire proposal from mediators, but Israel said the terms did not meet its demands and pressed ahead with strikes in Rafah while planning to continue negotiations on a deal.
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SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21 per cent to 832.19 tonnes on Monday from 830.47 tonnes on Friday.
Spot silver fell 0.1 per cent to US$27.44 per ounce, platinum gained 0.5 per cent to US$958.90 and palladium rose 0.4 per cent to US$981.34.
A private sector survey showed on Monday that China’s services activity expansion slowed a touch, but growth in new orders accelerated and business sentiment rose solidly. REUTERS
