Gold prices hovered in a narrow range early Thursday as market participants stayed cautious, waiting for key U.S. economic reports that could shed light on the Federal Reserve's next interest rate moves.
As of 09:00 GMT, spot gold remained stable at $2,645.00 per ounce, just shy of its record high of $2,685.42 from late September. U.S. gold futures edged higher by 0.2% to $2,663.50.
"Gold is consolidating now, but all signs point to a possible retest of the all-time high in the coming weeks," said Brian Lan, managing director at GoldSilver Central. "The technical charts indicate persistent upward momentum."
The key drivers in the immediate term include the release of the ISM services data and initial jobless claims, expected later today, as well as the crucial U.S. non-farm payrolls report due on Friday. Analysts predict these reports could offer further clues on the Federal Reserve’s monetary policy, especially as the markets adjust their expectations regarding rate cuts.
Recent data has shown surprising strength in the U.S. labor market, with private payrolls growing more than anticipated in September. This has slightly tempered market sentiment around aggressive interest rate cuts, with the odds of a 50-basis-point cut at the Fed's November meeting dropping to 36%, down from 57% last week, according to CME’s FedWatch Tool.
Gold, which typically performs well in low-interest-rate environments, continues to be a preferred asset for investors seeking refuge amid uncertainty. However, some of the focus has recently shifted to oil due to the energy sector’s robust performance.
“Tensions in the Middle East and the upcoming U.S. elections will provide long-term support for gold,” Lan said. “In the short-term, however, we might see some investment flows moving toward oil.”
Geopolitical instability remains a critical factor for bullion prices. Israel's airstrikes on Beirut on Wednesday, which killed at least six people, marked a deadly escalation in its ongoing conflict with Hezbollah.
On the demand front, Perth Mint’s gold sales surged to a 10-month high in September, with strong interest in silver products as well, pushing silver sales to a seven-month high.
Among other precious metals, spot silver declined 1.13% to $31.45 per ounce, platinum dipped 0.5% to $997.90, and palladium dropped 2.72% to $988. Augusta Precious Metals $0 (10 Years) $50,000 "Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings Goldco Vary $25,000 Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee American Hartford Gold Vary $10,000 American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..Expand Details
Renowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.Expand Details
From precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ yearsExpand Details
With over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their expert team provides investors with the latest market insights and a historical perspective, ensuring informed decisions. Trusted by public figures and praised for exceptional customer service, the company offers competitive pricing on top-tier gold and silver coins, backed by a 100% customer satisfaction guarantee
