Spot gold was 0.1% higher at $2,411.50 per ounce and U.S. gold futures settled up 0.3% at $2,415.70
Gold prices rose on Wednesday as the dollar slid, with investors’ focus shifting to U.S. economic data due this week for more signals on the timing of the central bank’s interest rate cuts.
Spot gold was 0.1% higher at $2,411.50 per ounce, as of 1747 GMT. U.S. gold futures settled up 0.3% at $2,415.70.
“A weaker U.S. dollar index, lower U.S. stock index prices, and higher crude oil prices,” are supporting buying interest for both gold and silver, according to Jim Wyckoff, senior market analyst at Kitco Metals.
The dollar index was 0.2% lower. A softer dollar makes bullion more attractive to buyers holding other currencies. The tech-heavy Nasdaq took the biggest hit in a weak open for Wall Street on Wednesday.
Investors are looking forward to a U.S. report on GDP for the second quarter on Thursday and personal consumption expenditures (PCE) data for June on Friday for clues on the Fed’s interest rate cut path.
The main thing helping gold right now is market expectations that the Federal Reserve may actually decide to cut earlier than September, said Chris Gaffney, president of world markets at EverBank.
Also, India reducing the import taxes on gold and silver helps as that is going to increase demand, he said.
India cut import duties on gold and silver to 6% from 15%.
Markets are expecting a 100% probability of a rate cut by the central bank in September, as per the CME FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding non-yielding gold.
Investors are also watching developments in the U.S. election campaign, as Vice President Kamala Harris is expected to be the Democratic Party’s candidate to face Republican Donald Trump.