{"id":103631,"date":"2024-07-12T11:28:14","date_gmt":"2024-07-12T07:28:14","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=103631"},"modified":"2024-07-12T11:28:16","modified_gmt":"2024-07-12T07:28:16","slug":"gold-prices-ease-slightly-after-rallying-on-rate-cut-expectations","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/gold-prices-ease-slightly-after-rallying-on-rate-cut-expectations\/07\/12\/market-updates\/","title":{"rendered":"Gold Prices Ease Slightly After Rallying on Rate Cut Expectations"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Gold prices experienced a minor dip in Asian trading on Friday, but still held strong gains from the previous session, bolstered by softer-than-expected U.S. inflation data that fueled expectations of a September interest rate cut.<\/p>\n\n\n\n<p><strong>Gold&#8217;s Strong Performance:<\/strong><\/p>\n\n\n\n<p>The yellow metal surpassed the significant $2,400 an ounce level on Thursday, approaching a record high, benefiting from a weaker dollar and lower Treasury yields. These factors, coupled with the anticipation of potential rate cuts, have positioned gold for a strong weekly performance.<\/p>\n\n\n\n<p><strong>Market Drivers:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Softer U.S. Inflation Data:<\/strong> The lower-than-expected U.S. consumer price index (CPI) data released on Thursday increased the likelihood of a rate cut in September, boosting gold&#8217;s appeal as a safe-haven asset.<\/li><li><strong>Dollar and Treasury Yield Declines:<\/strong> The dollar and Treasury yields fell in response to the CPI data, further supporting gold prices.<\/li><li><strong>Rate Cut Expectations:<\/strong> Traders are now pricing in an over 82% chance of a 25 basis point rate cut in September, up from 64% last week. Lower interest rates enhance gold&#8217;s attractiveness as a non-yielding asset.<\/li><\/ul>\n\n\n\n<p><strong>Other Precious Metals and Copper:<\/strong><\/p>\n\n\n\n<p>While other precious metals retreated slightly on Friday, they are also expected to benefit from the prospect of lower interest rates. However, copper prices dipped due to a decline in Chinese imports, which raised concerns about weaker local demand and a sluggish economic recovery in the country.<\/p>\n\n\n\n<p><strong>China&#8217;s Trade Data:<\/strong><\/p>\n\n\n\n<p>China&#8217;s trade data revealed a surprising contraction in imports in June, despite a surge in the trade surplus to a near two-year high and stronger-than-expected export growth. However, increased trade tariffs on key Chinese exports, like electric vehicles, could potentially offset these positive trends.<\/p>\n\n\n\n<p><strong>Looking Ahead:<\/strong><\/p>\n\n\n\n<p>Market focus now shifts to the Third Plenum of the Chinese Communist Party next week, where investors will seek further cues on the Chinese economy and potential stimulus measures.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices experienced a minor dip in Asian trading on Friday, but still held strong gains from the previous session, bolstered by softer-than-expected U.S. inflation data that fueled expectations of a September interest rate cut. Gold&#8217;s Strong Performance: The yellow metal surpassed the significant $2,400 an ounce level on Thursday, approaching a record high, benefiting &hellip;<\/p>\n","protected":false},"author":9,"featured_media":57580,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,36],"tags":[6832,11073,6885,7163,7164,7740,8977],"class_list":["post-103631","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-market-updates","tag-china","tag-chinese-gold-purchases","tag-fed","tag-jerome-powell","tag-powell","tag-rate-cut","tag-world-gold-council"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/103631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=103631"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/103631\/revisions"}],"predecessor-version":[{"id":103632,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/103631\/revisions\/103632"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/57580"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=103631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=103631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=103631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}