Friday, June 7, 2024
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Fed pause bets push gold to second straight monthly gain

Nov 30 (Reuters) – Gold slipped on Thursday but remained on track for a second straight monthly gain as expectations that the Federal Reserve may soon cut interest rates boosted the appeal of non-yielding bullion.

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Spot gold was down 0.4% at $2,036.47 an ounce by 2:40 p.m. ET (1940 GMT), having touched a near seven-month high in the previous session. Prices have gained 2.7% so far this month.

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US gold futures settled 0.5% lower at $2,057.2.

Contributing to gold’s slight dip, the dollar index (.DXY) rose for the day. But the currency was heading for its worst month in a year, while 10-year Treasury yields hit a two-and-a-half month low.

“Gold may be a bit tired here, but it’s had a very nice run. The pullback (in prices) should be limited to $2,015-$2,020 and there will be no concerns unless we fall back below $2,000,” said Tai Wong, a New York-based independent metals trader.

“We expect gold to make new highs in the first half of 2024 as we approach the Fed pivot and (with) the economy likely to slow,” said Daniel Ghali, commodity strategist at TD Securities.

Traders took stock of data showing US consumer spending rose moderately in October, while the annual rise in inflation was the smallest since early 2021. Jobless claims rose slightly.

The focus will be on Fed Chair Jerome Powell’s comments on Friday.

J.P. Morgan highlighted in its Commodities Outlook 2024 that among commodities, the only structural bullish call they have is on gold and silver.

Silver rose 0.9% to $25.22 an ounce, on track for its second consecutive monthly gain.

Platinum was down 0.3% at $929.09. Palladium fell 1.4% to $1,013.15.

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