Gold prices remained steady on Tuesday as investors focused on upcoming US economic data to get a clearer idea of when the Federal Reserve might cut interest rates.
Key Points:
- Spot gold was stable at $2,398.29 per ounce as of 0035 GMT, after hitting a more than one-week low in the previous session. US gold futures rose slightly by 0.1% to $2,397.70.
- Investors are watching the GDP report for the second quarter on Thursday and the personal consumption expenditures (PCE) data for June on Friday.
- The Federal Open Market Committee (FOMC) will hold a two-day policy meeting on July 30-31. Markets expect a 25-basis-point rate cut by September and two cuts by the end of the year.
- Lower interest rates make holding gold more attractive as it reduces the opportunity cost.
- Goldman Sachs mentioned that Chinese gold demand is currently low due to recent price increases, but central banks in emerging markets, including China, are likely to continue buying gold.
- China surprised markets by cutting major short- and long-term interest rates on Monday to boost growth.
- On the political front, US Vice President Kamala Harris, who is running for president, gave a campaign speech on Monday, promising to challenge Republican nominee Donald Trump.
- Spot silver fell 0.5% to $29.06 per ounce, platinum increased by 0.1% to $948.13, and palladium dropped by 0.1% to $907.25.
- Anglo American Platinum (Amplats) announced it has cut about 3,700 jobs to reduce spending ahead of its planned separation from parent company Anglo American.
