Gold remains flat as investors focus on Fed minutes

3 Jul 2024 , 10:00 AM

Gold prices were flat on Wednesday as investors awaited the minutes of the Federal Reserve’s last policy meeting for further clues on when the US central bank may begin decreasing interest rates.

The spot gold price was practically constant at $2,329.66 per ounce. Gold futures rose 0.2% to $2,338.70.

Prior to the release of the Fed minutes at 1800 GMT, Chair Jerome Powell stated on Tuesday that the United States was back on a “disinflationary path,” but policymakers wanted more data before cutting rates to ensure that recent softer inflation readings accurately reflected the economy.

Investors will be watching for the ADP employment and weekly jobless claims data later in the day, as well as the nonfarm payrolls (NFP) report on Friday.

According to the CME FedWatch Tool, traders are currently pricing in a 67% possibility of the Fed cutting interest rates in September.

Low interest rates lower the opportunity cost of owning non-yielding bullion.

Meanwhile, a private-sector poll revealed that China’s services activity grew at the weakest rate in eight months, and confidence fell to a four-month low in June.

Among other commodities, spot silver rose 0.3% to $29.60 per ounce, platinum increased 0.6% to $996.70, while palladium fell 0.5% to $1,016.34.

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