On September 25, gold remained nearly unchanged during Asian trading hours, supported by a modest dip in the U.S. dollar, as market participants held off on major moves ahead of critical economic indicators from the United States. By 0557 GMT, spot gold edged up 0.1% to $3,739.22 per ounce, while December gold futures in the U.S. held steady at $3,769.60.
The precious metal, often sought during periods of economic uncertainty and low borrowing costs, reached an all-time peak of $3,790.82 earlier in the week. Analysts suggest this rally may stem from growing confidence that the Federal Reserve will continue prioritizing employment conditions in its monetary policy decisions.
Ilya Spivak, global macro strategist at Tastylive, noted that technical levels remain key for traders. He pointed out that initial support is likely around $3,700 and $3,600, while surpassing the recent high near $3,790 could open the door to targets between $3,870 and $3,875, potentially paving the way toward $4,000.
Mary Daly, President of the San Francisco Federal Reserve, reinforced expectations of additional easing when she expressed full endorsement of last week’s rate cut and signaled anticipation for further reductions in the policy rate.
Market attention now turns to Friday’s release of the personal consumption expenditures (PCE) price index—the central bank’s preferred gauge of inflation. A Reuters survey forecasts a 0.3% monthly increase for August and a 2.7% rise compared to the same month last year.
Brian Lan, Managing Director at GoldSilver Central, commented that unless the data shows a significant deviation, it is unlikely to trigger a sharp reaction in gold markets. He added that from a quantitative standpoint, the long-term outlook remains strongly positive.
Later on Thursday, weekly jobless claims figures will offer additional insight into labor market resilience, another factor influencing the Fed’s decision-making.
According to current market pricing, there is strong expectation for two additional 25-basis-point rate cuts by the Federal Reserve this year, likely occurring in October and December.
Other precious metals showed mixed performance: spot silver rose 0.1% to $43.95 per ounce, platinum advanced 0.2% to $1,474.90, while palladium declined 0.6% to $1,203.86.
— news from Reuters
— News Original —
Gold holds steady as investors await key US economic data
Sept 25 (Reuters) – Gold prices were little changed on Thursday with a slightly weaker dollar lending some support, while investors awaited key U.S. economic data for further insights into the Federal Reserve ‘s policy path. n nSpot gold was up 0.1% at $3,739.22 per ounce, as of 0557 GMT. U.S. gold futures for December delivery were unchanged at $3,769.60. n nSign up here. n nSafe-haven bullion, which tends to thrive in a low-interest-rate environment, had hit a record high of $3,790.82 on Tuesday. n n”The move (gold ‘s rise) may reflect expectations that the Fed intends to run the U.S. economy hot as it rebalances its focus to the labour market,” said Ilya Spivak, head of global macro at Tastylive. n n”Initial support levels line up around $3,700 and $3,600. Breaking resistance at the latest high near $3,790 might expose $3,870-$3,875, followed by $4,000.” n nOn Wednesday, San Francisco Federal Reserve Bank President Mary Daly said she “fully supported” the Fed ‘s decision to cut its policy rate last week and expects further reductions ahead. n nInvestors are awaiting the personal consumption expenditures (PCE) price index report, the Fed ‘s preferred inflation measure, on Friday. n nThe report is expected to show a month-on-month rise of 0.3% for August and 2.7% year-on-year increase, according to a Reuters poll. n n”I don ‘t think the inflation data will significantly impact (gold) unless it ‘s exceptionally high,” GoldSilver Central MD Brian Lan said. n n”In our quantitative view of the market, the longer term is still very much bullish.” n nWeekly U.S. jobless claims data, due later on Thursday, may provide insights into labour market conditions. n nMarkets broadly expect two more 25-basis-point Fed rate cuts this year, in October and December. FEDWATCH n nSpot silver was up 0.1% at $43.95 per ounce, platinum gained 0.2% at $1,474.90 and palladium fell 0.6% to $1,203.86. n nReporting by Anmol Choubey in Bengaluru; Editing by Subhranshu Sahu and Harikrishnan Nair n nOur Standards: The Thomson Reuters Trust Principles., opens new tab n nAnmol reports on commodities markets, focusing on metals, energy, and agriculture. Beyond journalism, he has a keen interest in geopolitics and enjoys exploring global power dynamics through geopolitical strategy books and political thriller movies.