Gold Prices Climb Amid Rate Cut Bets and Soft US Data
Gold prices rose on Thursday due to weaker-than-expected US economic data that increased expectations of Federal Reserve interest rate cuts. The precious metal's rebound comes after a recent pullback, with investors seeking safe-haven assets amid growing signs of economic slowdown.
The US dollar index slipped 0.2% against a basket of major currencies, making gold cheaper for international buyers and adding to the metal's appeal. Treasury yields also declined, with the 10-year note falling to 4.25%, further supporting non-yielding assets like gold.
Market analysts are cautious ahead of upcoming inflation data and Fed commentary, which could alter the trajectory. The market is currently pricing in a 68% chance of a rate cut in September, according to the CME FedWatch tool, up from 60% a week ago.