Gold hits two-week low as traders expect smaller US federal interest rate cut | World News

Traders are confident the US Fed will cut rates this month and are pricing in a 59% chance of a 25 basis point cut, according to CME’s FedWatch tool.

This week’s US economic data, including Thursday’s ADP employment and jobless claims reports and Friday’s non-farm payrolls report, will be closely watched for clues on the Fed’s rate-cutting trajectory.

Bullion was also pressured to cover margin calls on weakness in stocks, StoneX analyst Rhona O’Connell said.

Stocks fell globally on Wednesday as technology shares fell, hit by record sales for US chipmaker Nvidia and as expectations of slowing global growth weighed on riskier assets.

“I still think the trend is up in precious metals and that these losses are corrective,” Grant said.

The non-yielding asset has gained more than 20% so far this year, hitting an all-time high of $2,531.60 on August 20.

“We see major upward sideways resistance at $2,510 per ounce and major horizontal resistance at $2,513. The initial breakout target of $2,543 remains,” Mike Ingram, market analyst at Kinesis Money, said in a note.

Spot silver rose 0.3% to $28.12 an ounce.

Platinum gained 0.3% to $905.82 and palladium fell 0.4% to $934.25.

First publication: September 04, 2024 | 21:50 IST