Gold extends gains as traders added to US rate cut bets after data
U.S. consumer prices rise slightly above expectations in September
U.S. weekly jobless claims surge
Traders see an 88% chance of a 25 bp cut in November
Adds graphic and updates prices as of 1524 GMT
By Anushree Mukherjee
Oct 10 (Reuters) -Gold prices extended gains on Thursday after traders added to bets that the Federal Reserve will deliver an interest-rate cut next month following the latest U.S. economic data.
Spot gold XAU= was up 0.6% at $2,622.69 per ounce as of 11:24 a.m. ET (1524 GMT)on track to snap a six-session losing streak. U.S. gold futures GCcv1 edged 0.5% higher to $2,639.90.
U.S. consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years. Another report showed that weekly jobless claims rose to 258,000 for the week ending Oct. 5, versus estimates of 230,000.
"The CPI report didn't bring much of a surprise and the jobs numbers show a trend of weakening, which puts the notion that the track to cut rates, helping gold. Last few days, saw cooling in gold's rally, so it is in a good position to go back up," said Alex Ebkarian, chief operating officer at Allegiance Gold.
Markets now see an 88% likelihood of a 25-basis-point cut from the Fed next month versus 76% before the data, according to the CME FedWatch tool.
Zero-yield bullion is a preferred investment amid lower interest rates.
Investors' focus will shift to U.S. Producer Price Index data on Friday for additional insights on rate cuts.
Heightened geopolitical events and strong demand led by central banks are the other positive catalysts for gold, Ebkarian added.
In the Middle East, Israel pressed its assault on Hezbollah and told Lebanese civilians not to return to homes in the south.
Spot silver XAG= rose 1.2% to $30.87 per ounce.
"Easing monetary policy and an undersupplied market will likely attract investor interest, with silver remaining an inexpensive alternative to gold," ANZ said in a note.
Platinum XPT= added 2.5% to $968.15, and palladium XPD= was up 1.9% to $1,059.77.
Spot gold price in USD per oz https://reut.rs/3A5er0J
Reporting by Anushree Mukherjee in Bengaluru; Editing by Tasim Zahid
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
