45.23 F
London
March 11, 2025
PI Global Investments
Precious Metals

Gold advances to 2-month peak as US rate cuts expected soon


March 1 (Reuters) – Gold started March on a positive note, with prices rising to a two-month high on Friday after muted economic data hardened expectations of a U.S. interest rate cut by June.

Spot gold rose 2.1% to $2,086.21 per ounce by 1:50 p.m. EST (1850 GMT), the highest since late December, and was on track for a second straight weekly rise.

U.S. gold futures settled about 2% higher at $2,095.7.

Benchmark U.S. 10-year Treasury yields and the dollar index (.DXY), opens new tab retreated after the data, making gold more attractive.

Data showed U.S. manufacturing slumped further in February and the University of Michigan’s surveys of consumers was also weak.

Another set of data on Thursday indicated that the annual increase in U.S. inflation in January was the smallest in nearly three years, keeping a June rate cut from the Federal Reserve on the table.

Bart Melek, head of commodity strategies at TD Securities, said gold is seeing some upside as the market is convinced that the Fed will ease its monetary policy by midyear, lowering the opportunity cost of bullion.

“In three-four months, prices will hit a record if we see poor economic data and the market is convinced that (the) Fed is ready to cut,” he said, adding that strong central bank buying is also supporting the market currently.

Lower interest rates tend to boost demand for non-yielding gold.

“There’s been consistent buying today behind weaker-than-expected data and somewhat friendly Fed commentary. The NYCB news after the close yesterday helped to set the table,” said Tai Wong, a New York-based independent metals analyst.

Investors also kept a tab on news that New York Community Bancorp found “material weaknesses” in internal controls related to its loan review, adding to commercial real estate exposure woes.

Spot silver rose 2.6% to $23.26.

Spot platinum rose 1.2% to $886.15, while palladium was up 1.4% at $955.50. Both eased on a weekly basis.

Northam Platinum’s (NPHJ.J), opens new tab CEO said platinum mining companies in South Africa are caught up in the worst crisis in three decades as prices plummet.

Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Kirsten Donovan, Jonathan Oatis and Shilpi Majumdar

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.



Source link

Related posts

Augusta Precious Metals Gold IRA Review 2024

D.William

Pioneering the Future of Precious Metals Across North America

D.William

Best Gold IRA Companies for Investing in Precious Metals: Review & Comparison

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.