GOLD prices drifted higher on Thursday (Jul 4), after softer-than-expected US economic data added to hopes that the Federal Reserve could cut interest rates in September.
Spot gold rose 0.1 per cent at US$2,357.59 per ounce, as at 0030 GMT after hitting a near two-week high in the previous session. US gold futures lost 0.2 per cent to US$2,365.50.
Data on Wednesday showed that first-time applications for US unemployment benefits increased last week, while the number of people on jobless rolls rose further to a 2½-year high towards the end of June, consistent with a gradual cooling in the labour market.
Markets are now pricing in a 74 per cent chance of the Fed cutting interest rates in its September meeting, according to the CME FedWatch Tool.
Lower rates reduce the opportunity cost of holding non-yielding gold.
Meanwhile, Fed officials at their last meeting acknowledged the US economy appeared to be slowing but still counselled a wait-and-see approach before committing to rate cuts, according to minutes of the Jun 11 to 12 session.
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Fed Bank of New York president John Williams said on Wednesday that the level of interest rates that’s neutral in its impact on the economy likely has not risen much.
Traders now look towards the US non-farm payrolls report due on Friday.
Spot silver rose 0.1 per cent to US$30.49, platinum added 0.1 per cent at US$998.11 and palladium fell 0.4 per cent to US$1,025.36. REUTERS
