PT Solid Gold Berjangka | Gold Steadies Near Two-Week Low as Imminent Rate-Cut Hopes Fade
GOLD EMAS Spot Emas PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | Gold held steady near its lowest level in more than two weeks as solid U.S. economic growth data dampened speculation that the Federal Reserve will cut interest rates as early as next week.
Bullion was slightly lower in early Asian trading at around $2,365 an ounce, down 1.5% for the week. U.S. economic growth in the second quarter, released Thursday, accelerated more than expected, indicating that demand is holding up despite higher borrowing costs. The results reinforced the swap market’s view that U.S. policymakers will wait until September to begin the monetary easing cycle. Lower interest rates typically benefit bullion that does not pay interest.
Investors are now waiting for an update on the Personal Consumption Expenditure Index to be released on Friday. The data is expected to show a slowdown in price growth, and traders may raise their bets on a rate cut as policymakers continue to seek evidence that inflation is cooling toward their 2% target.
Bets on aggressive easing by the Fed rose earlier this week amid debate over whether the central bank should take action at next week’s meeting. Former New York Fed President William Dudley said Wednesday that policymakers should cut rates at that meeting.
Bullion, which hit an all-time high last week, is still up 15% this year, partly on expectations of Fed policy easing. Strong demand from central banks is also supporting the market, while continued geopolitical tensions and the tumultuous U.S. presidential election have increased its appeal as a flight asset.
Spot gold was flat at $2364.19 at 8:16 a.m. in Singapore. The Bloomberg Dollar Spot Index was down 0.1%. Silver was steady but down for the third time in a week, shedding 11%. Palladium and platinum were little changed.
Source: Bloomberg