Gold prices succeeded in achieving strong increases during trading on Friday, and rose by more than $30, in light of the strengthening of market expectations regarding a reduction in US interest rates soon, after the release of the US Federal Reserve’s favorable inflation data.
Gold futures prices now:
In today's trading, gold futures for August delivery rose by 1.29% or $30.45 per ounce to trade near $2,384 per ounce. Spot gold futures also rose by 0.90% or $21 to trade near $2,385 per ounce.
What are the reasons for the rise in gold today?
Gold prices found strong support during trading, coinciding with the strengthening of expectations regarding the approaching date of the US interest rate cut, especially after the release of US consumer spending data (the Federal Reserve’s preferred inflation data), as the data released today showed the stability of the core personal consumption expenditure index in the United States at 2.6% on an annual basis during last June, which was higher than market expectations, which were expected to record around 2.5%.
Immediately after the data was released, the chances of a US interest rate cut this year were boosted, as the FedWatch tool shows that the chances of a 25 basis point US interest rate cut at the September meeting are about 88%. Also, expectations indicate a 60% chance of an additional 25 basis point rate cut at the November meeting, and these new expectations boosted gold’s performance during trading.
Gold prices also received some support from concerns about not reaching an agreement to end the war in the Gaza Strip, especially after some reports indicated that Israel is seeking to introduce amendments to a plan aimed at reaching a truce in Gaza and releasing prisoners held by Hamas, which complicates reaching an agreement to end the fighting that has continued for nine months and resulted in the destruction of the Strip. These developments had a positive impact on gold prices.
Other metals prices during gold:
On the sidelines of other metals trading other than gold today, spot contracts recorded a 0.17% increase and settled near $28.025, while platinum contracts decreased by 0.20% and recorded about $943.80. However, palladium contracts decreased by 0.95% and reached about $887.53.
