Gold prices edged up on Monday as U.S. Treasury yields eased, while investors awaited an inflation reading due later this week that could influence the Federal Reserve’s interest rate trajectory. Spot gold was up 0.4% at $2,330.56 per ounce as of 0834 GMT, after dropping 1% on Friday due to a stronger dollar. U.S. gold futures rose 0.5% to $2,343.30. Benchmark 10-year U.S. Treasury yields edged down, making non-yielding bullion more attractive for investors.
According to UBS analyst Giovanni Staunovo, the focus remains on incoming U.S. economic data. If this data confirms a soft landing, it could allow the Fed to cut interest rates. Staunovo believes gold will remain supported, targeting a price of $2,600 per ounce by the end of the year. The Personal Consumption Expenditures (PCE) data, the Fed’s preferred measure of inflation, is due on Friday. Throughout this week, at least five Fed officials will speak, including San Francisco Fed President Mary Daly and Fed Governors Lisa Cook and Michelle Bowman. Traders are currently pricing in a 66% chance of a Fed rate cut in September, according to the CME FedWatch Tool. Lower rates reduce the opportunity cost of holding bullion.
Data on Friday showed that U.S. business activity crept up to a 26-month high in June, but price pressures subsided considerably. On the geopolitical front, eight Palestinians were killed on Sunday in an Israeli airstrike on a training college near Gaza City that was being used to distribute aid.
Among other precious metals, spot silver rose 0.5% to $29.68 per ounce and platinum gained 0.6% to $998.35. Palladium gained 4.6% to $992.53. In the previous session, palladium prices hit a one-month high and briefly broke above the key level of $1,000 per troy ounce in volatile trade, as some investors covered their short positions and the market was tight for nearby physical supply.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
