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Gold futures rose on Wednesday as weaker-than-expected U.S. private jobs data and U.S. Treasury yields fell, raising fresh hopes that the Federal Reserve will cut interest rates in September.
Two-year Treasury yields fell 4 basis points To 4.73%, it has fallen 25 basis points in the past five trading days, the longest decline in four years. The 10-year and 30-year interest rates also fell by 4.29% and 4.44% respectively, hitting the lowest level since March 28 for five consecutive years. trading days.
According to the CME FedWatch tool, traders now see a roughly 67% chance of a rate cut by the Fed in September, up from less than 50% last week.
Analysts said other important U.S. economic reports, including the non-farm payrolls report scheduled for Friday, could affect gold prices.
“ETFs may now be the main catalyst for gold’s bullish momentum going forward, as prices slide further [U.S.] According to Dow Jones, analysts at SP Angel said government yields are expected to drive safe-haven investors into gold.
Front-month Comex gold (XAUUSD:CUR) for June delivery ends +1.2% Front-month June silver closed at $2,354.10 per ounce +1.5% to $29.948 per ounce.
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The World Gold Council said net purchases of gold by global central banks jumped to 33 tons in April from a revised net purchase of 3 tons in March, showing that gold’s appeal remains strong despite high prices.
John Reid, chief market strategist at the World Gold Council, said at the Nomura Asian Investment Forum this week that U.S. interest rate cuts may win back Western gold investors.
Reade said rising interest rates were hurting European and U.S. investor interest in gold, although gold prices were holding up well, helped by central bank purchases, mostly from emerging markets.
