ALBAWABA - Gold price has reached its highest level in two weeks on Thursday, Reuters reports, as investors became more confident about potential interest rate reduction from the Federal Reserve later this year due to recent negative U.S. economic data and the lack of clarity regarding numerous elections around the world.
After reaching its highest point since June 7 earlier in the day, spot gold rose by 0.3 percent at $2,333.69 per ounce as of 0908 GMT, while Gold futures in the US were stable at $2,347.30.
The Fed is currently delicately shifting towards what many experts anticipate to be one or more rate cuts by the end of this year since data released on Tuesday revealed that U.S. retail sales hardly increased in May, demonstrating that economic activity continued to be inadequate in the second quarter.
“While U.S. policymakers have guided for only one rate cut through 2024, market rate expectations are leaning more dovish, which seems to be finding validation from pockets of economic weakness presented,” said IG market strategist Yeap Jun Rong, according to CNBC, adding that “further economic weakness may offer a lift for gold prices.”
The market is currently focusing on the weekly data on unemployment claims, which is scheduled to be reported on Thursday at 12:30 GMT, and the flash purchasing managers' indices, which are scheduled to be released on Friday.
