- October 2, 2024
- By: Admin1_blog
- Precious Metal Market
Gold prices were flat on Wednesday, as a firmer dollar partially offset safe-heaven demand amid heightened Middle East tensions, while investors awaited U.S. data for further economic cues.
Spot gold held its ground at $2,659.79 per ounce, as of 0325 GMT, after rising more than 1% in the previous session.
U.S. gold futures eased 0.4% to $2,680.90.
Israeli Prime Minister Benjamin Netanyahu promised that arch foe Iran would pay for its missile attack against Israel on Tuesday, while Tehran said any retaliation would be met with “vast destruction”, raising fears of a wider war.
Bullion is considered a safe investment during times of political and financial uncertainty.
“Gold benefited from safe-haven demand during a risk-off session on Tuesday. Unless tensions in the Middle East escalate further, I suspect gold to remain beneath its record high and provide choppy trading conditions as we await data,” said Matt Simpson, senior analyst at City Index.
The dollar held to its sharpest gain in a week. A stronger dollar makes greenback-priced bullion more expensive for other currency holders.
Market participants will closely monitor ADP employment data and remarks from several Federal Reserve officials later in the day, along with ISM services data and nonfarm payrolls due later this week.
There’s a reasonable chance that both ISM and NFP reports could surprise to the upside, which could topple gold from current levels on reduced bets of aggressive Fed easing, said Simpson.
Traders see a 63% chance of a 25-basis-point cut in November and a 37% chance of a 50-bp cut.
Meanwhile, physical demand for gold in key markets has dropped due to high prices, with some retail consumers selling their holdings to lock in profits, industry players and analysts said.
Spot silver was flat at $31.4 per ounce, platinum gained 1.2% to $997.30 and palladium rose 1.6% to $1,010.35.
Source : cnbc
