Gold weakens as investors look for clues on future rates — TradingView News

Gold prices fell on Monday as investors awaited more U.S. economic data, while reports last week showed inflation was stabilizing and raised hopes that the Federal Reserve would cut interest rates. interest throughout this year.

Spot gold GOLD It was down 0.4% at $2,322.24 an ounce around 0320 GMT, after rising more than 1% on Friday. US gold futures GOLD They fell 0.5%, to $2,337.10.

Reuters Graphics
Thomson ReutersSpot gold price in USD per oz

“Today’s small move is probably a small correction to Friday’s move,” said Kyle Rodda, financial markets analyst at Capital.com, adding that long-term fundamentals are very constructive for gold, but depend on the data.

U.S. retail sales will be released on Tuesday, weekly jobless claims on Thursday, and PMI indices on Friday. Several Federal Reserve officials are also scheduled to speak this week.

“With some signs of weakness emerging in the US economy, which could weaken the dollar and raise expectations of future rate cuts, gold is in a great position to take advantage of them,” Rodda added.

Data released last week showed some weakening of price pressures in the US, suggesting the labor market was losing momentum, keeping hopes alive for a rate cut in September.

Traders see a 68% chance of a cut in September, according to CME Group’s FedWatch tool, up from 63% before Thursday’s output price data. (FEDWATCH)

However, Minneapolis Fed President Neel Kashkari said Sunday that it is a “reasonable prediction” that the U.S. central bank will cut interest rates once this year, waiting until December to do so.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

In other metals, spot silver XAGUSD1! fell 1.1%, to $29.21 per ounce, platinum PL1! fell 0.1% to $957.00 and palladium XPDUSD1! It remained stable, at $889.93.

 
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