Gold Prices Edge Higher as Traders Await US Retail Data

Gold prices showed slight gains on Wednesday, benefiting from a dip in US treasury yields. As market participants await key US economic data, many are keen to assess how this will influence future interest rate cuts by the Federal Reserve.
Spot gold increased by 0.3%, reaching $2,667.97 per ounce by 2:17 AM GMT, just $17 below the all-time high recorded last month. Meanwhile, US gold futures rose by 0.2%, hitting $2,683.80. The decline in 10-year treasury yields for the third consecutive session has made zero-yield gold more attractive to investors.
Gold Outlook Influenced by US Economic Policy

“The game changer for gold prices remains the easing of US monetary policy, as it enhances investment demand,” noted Soni Kumari, a commodity strategist at ANZ. Additionally, ongoing uncertainties surrounding the US elections and geopolitical tensions are expected to lend further support to gold in the coming months.

Traders are now eagerly anticipating data on US retail sales, industrial production, and weekly jobless claims, which are due on Thursday. These figures are likely to provide fresh insights into the Federal Reserve’s monetary easing plans. Currently, there is a 97.2% chance of a 25 basis point rate cut in November, with more cuts expected in 2024, according to Federal Reserve officials.
Elsewhere, the London Bullion Market Association’s delegates forecast gold prices to rise to $2,941 over the next year, while silver could climb to $45 per ounce.

On Wednesday, spot silver firmed by 0.3% to $31.56, platinum increased by 0.6% to $990.49, and palladium rose 0.2% to $1,011.47.

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