Gold prices remained stable today, hovering near the highest levels recorded in the previous session. Expectations of a US interest rate cut next month have increased the appeal of the precious metal.
Spot gold edged down by 0.2% to $2,501.19 an ounce, after reaching an all-time high of $2,509.65 an ounce on Friday. Meanwhile, US gold futures rose by 0.1% to $2,540 an ounce.
Recent data showed a decline in the construction of single-family homes in the US in July, as higher mortgage rates and home prices discouraged potential buyers. This suggests a cooling of inflation.
Last week, strong retail sales figures and lower-than-expected jobless claims, combined with moderate inflation data, restored confidence in the US economy. According to CME’s FedWatch tool, traders are now anticipating a Federal Reserve interest rate cut on September 18, with a 75.5% chance of a 25 basis point cut and a 24.5% chance of a 50 basis point cut. A lower interest rate environment is expected to increase gold’s attractiveness.
In other precious metals, spot silver fell by 0.22% to $28.94 an ounce, platinum dropped by 0.1% to $953.06 an ounce, and palladium declined by 0.8% to $943.46 an ounce.
