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The global gold price has dropped for four consecutive sessions, hitting its lowest level in nearly two weeks.
The global gold price has dropped for four consecutive sessions, hitting its lowest level in nearly two weeks.
05 tháng 9 2024・ 11:40
Gold prices fell to their lowest level in nearly two weeks on Wednesday (September 4), extending their decline for a fourth consecutive session, as the market anticipates a slight interest rate cut by the U.S. Federal Reserve at this month’s policy meeting.
At the close of trading on September 4, spot gold slipped 0.02% to $2,493.33 per ounce, while gold futures fell 0.06% to $2,524.40 per ounce.
Peter A. Grant, Vice President and Senior Metals Strategist at Zaner Metals, stated, “The pressure largely stems from expectations that the Fed will only cut rates by 0.25% in September. The prospects for a larger 0.50% rate cut have diminished.”
According to the CME FedWatch tool, investors are confident that the Fed will lower interest rates this month, with a 59% probability that the rate will be cut by 0.25%.
This week's U.S. economic data, including the ADP employment report, weekly jobless claims data set for release on September 5, and the official jobs report on September 6, will be closely monitored for signals on the Fed’s rate-cut trajectory.
Rhona O’Connell, an analyst at StoneX, noted that gold is also under pressure due to margin calls related to the stock market’s decline.
Global equities fell on Wednesday as technology stocks plunged, impacted by a record selloff in chipmaker Nvidia, and as forecasts of slowing global growth negatively affected risk assets.
Grant added, “I still believe precious metals are on an upward trend, and these dips are merely corrections.”
Gold has surged 20% since the start of the year, hitting an all-time high of $2,531.60 per ounce on August 20.
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