On September 24, gold prices declined as the U.S. dollar gained strength, pulling back from the all-time high reached the previous day. Market participants remained cautious, awaiting upcoming U.S. economic indicators that could shed light on the Federal Reserve’s future monetary policy direction.
By 01:56 p.m. ET (1756 GMT), spot gold had dropped 0.8% to $3,734.58 per ounce, following a peak of $3,790.82 on Tuesday. Meanwhile, December-delivery U.S. gold futures closed 1.2% lower at $3,768.1.
Phillip Streible, chief market strategist at Blue Line Futures, noted that gold is currently adjusting to recent remarks from the Federal Reserve and ongoing geopolitical concerns involving Russia, with traders adopting a measured stance before the release of critical economic figures.
Federal Reserve Chair Jerome Powell refrained from offering new signals about interest rate adjustments during his Tuesday remarks, emphasizing the central bank’s need to carefully weigh persistent inflation risks against a weakening labor market.
According to the CME FedWatch tool, financial markets are forecasting two additional 25-basis-point rate reductions this year—one in October with a 94% likelihood and another in December at 77% probability.
Attention now turns to Thursday’s weekly jobless claims report and Friday’s Personal Consumption Expenditures (PCE) index release, which the Fed considers its primary inflation metric.
In geopolitical developments, Ukraine’s armed forces reported striking two oil pumping stations overnight in Russia’s Volgograd region.
Gold, often viewed as a safe-haven asset, typically gains appeal during times of economic or political instability. It also tends to perform well in environments with lower interest rates, given its status as a non-interest-bearing investment.
Other precious metals also saw declines: spot silver dipped 0.4% to $43.84 per ounce, platinum fell 0.7% to $1,468.44, and palladium decreased 0.7% to $1,211.45.
— news from Reuters
— News Original —
Gold slips from record peak; markets eye US economic data
Sept 24 (Reuters) – Gold prices eased on Wednesday as the U.S. dollar firmed, retreating from a record high scaled in the previous session, while investors hunkered down for economic data due later in the week for further cues on the Federal Reserve ‘s policy path. n nSpot gold fell 0.8% to $3,734.58 per ounce, as of 01:56 p.m. ET (1756 GMT), after hitting a record high of $3,790.82 on Tuesday. n nSign up here. n nU.S. gold futures for December delivery settled 1.2% lower at $3,768.1. n n”Gold is still digesting some of the commentary coming out of the Federal Reserve yesterday and also geopolitical tensions with Russia… It ‘s slightly cautious ahead of some economic data coming out,” said Phillip Streible, chief market strategist at Blue Line Futures. n nFed Chair Jerome Powell on Tuesday offered no new clues on the future course of interest rates, stressing that the central bank must carefully balance the risks of stubborn inflation against a slowing job market. n nMarkets are pricing in two additional 25-basis-point rate cuts this year — one in October with a 94% probability and another in December with a 77% probability, according to the CME FedWatch tool. n nFocus is now on Thursday ‘s weekly U.S. jobless claims data and Friday ‘s release of the U.S. Personal Consumption Expenditures index, the Fed ‘s preferred inflation gauge. n nOn the geopolitical front, Ukraine ‘s military said on Wednesday it struck two oil pumping stations overnight in Russia ‘s Volgograd region. n nSafe-haven gold becomes more attractive during periods of geopolitical and economic uncertainty. It also tends to thrive in a low-interest-rate environment as it is a non-yielding asset. n nSpot silver fell 0.4% to $43.84 per ounce. Platinum fell 0.7% to $1,468.44, and palladium lost 0.7% to $1,211.45. n nReporting by Noel John in Bengaluru; additional reporting by Kavya Balaraman; Editing by Shilpi Majumdar, Shailesh Kuber and Shinjini Ganguli