Gold aims for its second weekly rise on optimism over the US rate cut.

Gold aims for its second weekly rise on optimism over the US rate cut.
Gold aims for its second weekly rise on optimism over the US rate cut.

Gold prices were set to post a second consecutive weekly rise on Friday, as recent softer US economic data kept traders optimistic about interest rate cuts later this year, while that other precious metals were also headed for a weekly rise.

Spot gold rose 0.2% to $2,363.06 an ounce around 0953 GMT, having hit two-week highs earlier in the session.

Bullion has gained more than 1% so far this week, adding to last week’s 1.7% rise.

US gold futures rose 0.3% to $2,376.70 on the day.

“There has been some softness in US economic data this week, with yesterday’s housing data pointing to a slowdown with high interest rates having a negative impact on activity there,” said Ole Hansen, head of commodities strategy at Saxo Bank.

Data on Thursday showed that first-time U.S. jobless claims fell moderately last week, while new home construction fell. This, along with last month’s tepid retail sales, keeps the possibility of a rate cut in September on the table.

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

Meanwhile, the Chinese yuan fell to a new seven-month low against the dollar.

“The soft Chinese renminbi is also one of the reasons why investors in general in China have flocked to gold in recent months, apart obviously from concerns about the real estate sector,” Hansen said.

The next market focus will be on the US Purchasing Managers’ Leading Indices due to be released at 1345 GMT.

Spot silver fell 1.1% to $30.37 an ounce, but following gold’s path, it is also up 3% so far this week.

“Where gold goes, silver goes, but faster,” Hansen said.

Spot platinum rose 0.8% to $986.05 and palladium gained 1.5% to $937.56. Both metals were also heading for weekly gains.

 
For Latest Updates Follow us on Google News
 

-

NEXT Mexico on alert for Category 4 Hurricane Beryl. Heading to the Yucatan Peninsula