Gold prices were a tad up on Wednesday due to positive footing for an up month and due to Global geopolitics after the killing of Hamas leader Ismail Haniyeh in Iran and expectations of US interest rate cuts. Hawkish sentiments from the Federal Reserve Bank have led traders to focus on this benchmark policy rate now.
Spot gold gained 0. 4 percent to stand at $2,416. 79 an ounce, levels that show a 3. 85 percent leap so far this month as measured at 0401 GMT. Gold futures on the US market were 0. 5 percent higher and traded at $2,414. 80.
Haniyeh who leads Hamas and the Iranian Revolution Guards Corps identified to have been killed has insisted on increased demand for gold as a safe-haven asset explained by Kyle Rodda a financial market analyst at Capital Dot Com. Rodda added that a higher level of political turmoil can further boost the price of gold. Gold is enjoyed when there is a geopolitical and economic risk as well as when the interest rate is low.
Investors are expecting the Federal meeting to maintain interest rates constant once its two-day meeting is over on Wednesday with indications of another rate cut in September. “The market is seeking assurance that a cut is coming and the onset of a policy easing cycle, if the Fed suggests multiple cuts gold price may increase,” Rodda said.
Besides, traders will focus on the ADP employment and US payrolls expected today and on Friday, correspondingly.
However spot silver increased by 0. 7% to $28. 60 an ounce while platinum increased by 1% to $968. 80 and palladium trading at 1. 3%, $900. 21 an ounce. Still, there are milestones that positions both metals for a monthly decrease.
Over in Asia-Pacific, manufacturing shrank in China in July, which may signal that Beijing will pump more stimulus measures since it is struggling to resolve an extended property downturn and new jobs instability.