The search for balance in gold
Gold is trading in a tight range, just above $2,315 an ounce, as investors look for new clues about the Federal Reserve’s interest rate policy outlook.
Price data due next week will offer more insight into the U.S. economy after nonfarm payrolls numbers on Friday pointed to a cooling in the labor market.
Spot gold is trading at $2,315 per ounce, up 0.2 percent on the 4th trading day of the week.
Boston Fed President Susan Collins signaled Wednesday that interest rates will likely need to remain at two-decade highs for longer than previously thought to ease price pressures.
Gold investors are monitoring tensions in the Middle East after Israeli forces entered Gaza’s Rafah city and a ceasefire between Israel and Hamas proved difficult to achieve. The continued rise in tension will increase the safe haven appeal of gold.
China’s central bank increased its gold reserves for the 18th consecutive month in April. Strong demand from central banks and Chinese consumers has helped gold rally 12 percent this year.
Today, gold investors will follow the interest rate decision of the Bank of England abroad and weekly unemployment applications in the USA.