Gold Rises On Weak Usd

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Gold Rises On Weak Usd

Gold Rises On Us Dollar Decline Amid Rate Cut Hopes

Gold prices are trading in an uptrend on Wednesday after a retreating USD amid rising hopes of a Fed rate cut. The recent comments from Jerome Powell have hinted that the chances of a rate cut in 2024 are still pretty strong, sending the USD lower.

Although the Gold prices have flexed their muscles, the prices are still within a familiar trading range. It appears that the inventors want to get more cues related to the US interest rate policy before making any big moves.

Spot Gold Trades At $2332.16 / Ounce

Spot Gold prices are trading at $2332.16 per ounce with a +0.1% change, while the gold futures for August are seen at $2341 with a +0.3% change.

The overnight decline seen in the DXY has strengthened Gold, Silver, and other precious metals. The progress comes as Powell has commented on how the disinflation trend is according to their satisfaction.

However, Powell also talked about how the US Federal Reserve still needs more confidence in the form of economic data before starting the rate cuts.

These comments, combined with the upcoming labor market data, limit the gains in Gold, silver, and other materials. Now, the focus has shifted to the upcoming NFP report and the comments from other key Fed officials.

The biggest event of the week will be the NFP, due on Friday, which will provide some valuable insights into the US labor market.

look at other metals shows that an appreciation was seen all across the board with Platinum futures up by $1012 while the Silver futures are trading at $29.96 with +1% gains.

Similarly, Copper has also registered gains during the day amid a weaker dollar and talks of rate cuts. However, the gains in Copper were capped as the data coming out of China is still weak. The overall sentiment in the market is now dollar-bearish, allowing the precious metals to truly shine for now.

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