Gold is below record levels, set for the best quarter in eight years | commodities

“Gold still looks poised for potential $2,700 if labor data this week aligns with the potential for another 75 basis points of Fed easing by the end of the year,” said Tim Waterer, chief analyst at market at KCM Trade.

Fed Chairman Jerome Powell and Governor Michelle Bowman are expected to deliver speeches later in the day that could provide insight into the policy outlook.

“The market is expecting a risk event today, especially a bunch of Federal Reserve officials speaking,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.

This week’s data lineup includes the US ADP employment numbers and non-farm payrolls, which could provide more clarity on the state of the US labor market.

Data on Friday showed the US economy retained some of its solid momentum in the third quarter as inflationary pressures continued to ease. That fueled expectations of another outsized interest rate cut at the Fed’s November policy meeting.

Zero yield bullion tends to be a preferred investment in a low interest environment and during geopolitical turmoil.

Israel launched airstrikes on Sunday against Yemen’s Houthi militia and dozens of Hezbollah targets in Lebanon.

Among other metals, spot silver was down 0.5 percent at $31.47 an ounce after hitting a 12-year high last Thursday and is set for an 8 percent quarterly gain, its fourth straight gain.

Platinum was down 0.8% at $992.0. Palladium gained 0.5% to $1,016.00 and was on track for a quarterly gain.

First publication: September 30, 2024 | 15:40 IST