Gold prices rise before the release of US economic data

Gold prices experienced an increase in today’s trading on Thursday, January 4, rebounding from the significant decline witnessed on Wednesday, marking the sharpest drop in three weeks. This decline occurred after the release of the minutes from the last US Federal Reserve meetings in 2023, revealing uncertainty regarding the timing of potential interest rate cuts.

In trading activities, gold futures saw a rise of approximately 0.4%, reaching $2,050 per ounce.

The minutes from the US Federal Reserve indicated that officials are becoming increasingly confident in controlling inflation, noting reduced risks and concerns that overly aggressive tightening measures could harm the economy. However, the minutes also highlighted discussions among participants regarding the growing uncertainty surrounding expectations related to interest rate cuts, emphasizing that additional rate hikes remain a possibility.

Investors are currently estimating a 70% likelihood of interest rates being reduced at the upcoming March meeting.

Market participants are eagerly anticipating the release of economic data later today, particularly focusing on non-agricultural private sector job figures and unemployment claims in America.

Investors are also closely monitoring developments in the Middle East, as the ongoing conflict between Israel and Gaza has now extended to Lebanon.