Gold is approaching a two-week high

Wednesday, July 03, 2024 - 20:18
Point Trader Group

Gold prices rose by more than 1%, approaching the highest level in two weeks, on Wednesday, driven by increased bets that the US Federal Reserve will cut interest rates in September after recent US data indicated a slowdown in the labor market.

Gold rose in instant transactions by 1.2% to $2,357.06 per ounce. US gold futures gained 1.5 percent, recording $2,369.40 per ounce at settlement.

Applications for US unemployment benefits increased for the first time last week, and the number of those registered on unemployment lists rose to the highest level in two and a half years at the end of June, consistent with the gradual slowdown in the labor market.

An index of US services sector activity fell to the lowest level in four years in June with a sharp decline in orders, which may indicate that the economy is losing momentum at the end of the second quarter of the year.

After the release of the US data, the dollar fell to its lowest level in two weeks, making gold more attractive to holders of other currencies, and US 10-year Treasury bond yields also declined.

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