Gold prices surged to 2368 USD per troy ounce on Thursday, marking the second consecutive session of upward momentum. This increase comes as market expectations adjust to the possibility of future interest rate cuts by the Federal Reserve, driven by recent employment data.

ADP data indicated that the number of private-sector jobs in the US for May grew less than expected, with April’s figures also revised downwards. This points to a cooling yet robust employment market, bolstering speculation about impending rate cuts. According to the CME Group’s FedWatch tool, market participants foresee two rate cuts in 2024, with a 70% chance of easing by September.

Attention is now focused on Friday’s comprehensive labor market reports from the US, which will provide further insights into the economic outlook and potential direction of monetary policy. Additionally, recent global moves by central banks, such as the Bank of Canada’s first rate cut in four years and the expected rate cut by the European Central Bank today, are impacting gold prices.

Gold Prices Surge to $2368 Amid Rate-Cut Speculation

Jun 06 2024

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