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Gold little changed as investors await U.S. economic data


Spot gold was stable at $2,310.47 ounce, while U.S. gold futures shed 0.2% to $2,317.30

Gold prices were little changed on Thursday as investors eyed U.S. economic data including weekly jobless claims numbers that could offer more cues on when the Fed would deliver its interest rate cuts.

Spot gold was stable at $2,310.47 ounce, as of 0730 GMT. U.S. gold futures shed 0.2% to $2,317.30.

The U.S. weekly jobless claims data is due at 1230 GMT and the University of Michigan’s consumer sentiment figure on Friday. The CPI data is scheduled to be released next week.

Despite market expectations of a rate cut in September, gold traders are cautious about making big moves. If the U.S. inflation data comes hotter, then prices could drop to $2,290, said Ajay Kedia, director at Kedia Commodities.

As per the CME’s FedWatch Tool, traders are currently pricing in nearly a 66% probability of a Fed rate cut in September. Lower rates reduce the opportunity cost of holding bullion.

Fed Bank of Boston President Susan Collins said on Wednesday that the U.S. economy needs to cool off to get inflation back to the central bank’s 2% target.

Looking ahead to the rest of 2024, the outlook for gold remains relatively positive, according to ACY Securities analyst Luca Santos.

Santos added: There’s even potential for it to break above $2,500, particularly if economic conditions remain uncertain and geopolitical tensions continue.

China’s exports and imports returned to growth in April, indicating an encouraging improvement in demand at home and overseas.

Spot silver advanced 0.9% to $27.60 per ounce.

Long-term view on silver remains positive. It can jump to $30 in the fourth quarter, Kedia added.

Platinum added 0.8% to $979.65 and palladium strengthened 0.1% to $952.43.

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