AFP
changed gold prices Slightly Monday, July 3, as the strength of the US dollar affected the attractiveness of the yellow metal, at a time when markets are awaiting important economic data to obtain more information about the Federal Reserve’s plans to raise interest rates in the future.
Spot gold prices stabilized at $1919.89 an ounce, and US gold futures fell 0.1% to $1927.50.
The stagnant consumer spending in the US in May indicates that the US Federal Reserve’s move to raise interest rates to tame inflation is slowly bearing fruit.
The core personal consumption expenditures price index, the Fed’s preferred measure of inflation, rose 4.6% year-on-year, after rising 4.7% in April.
Investors see an 87% chance of a 25 basis point rate hike in July, according to CME Group’s Feed Watch, and expect rates to remain in a range of 5.25% and 5.5% before falling in 2024.
Bullion fell 2.5% in the second quarter, in light of expectations that the US Federal Reserve will continue to raise interest rates, as high interest rates reduce the attractiveness of investment in gold, which does not generate returns.
The dollar index approached a two-week high it hit on Friday, making gold expensive for holders of other currencies.
With regard to other precious metals, silver rose in spot transactions by 0.5% to $22.87 an ounce, platinum by 0.1% to $901.84, and palladium increased by 0.9% to $1,237.97.
2023-07-03 09:40:00
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