Gold Prices Surge Amid Speculation of Fed Rate Cuts
Solid ECN—Gold prices climbed to $2,370 per ounce on Thursday, continuing the upward trend from the previous day. This increase came after U.S. economic reports suggested that the Federal Reserve could lower interest rates later this year.
Data from ADP revealed that U.S. private job growth in May was weaker than expected, and figures for the previous month were also adjusted downwards. This points to a slowing, yet still robust, job market.
Consequently, market players expect the Fed to implement two rate cuts this year, with a 70% probability of one occurring in September, according to the CME FedWatch Tool. Investors now look forward to Friday's non-farm payroll figures to further evaluate the U.S. economy and gain insights into the Fed's rate cut plans.
In related news, the Bank of Canada reduced its primary interest rate on Wednesday, marking its first cut in four years, and the European Central Bank is likely to decrease rates later today.