GOLD prices edged higher on Tuesday (Aug 6) from multi-week lows after US central bank policymakers did their best to reassure markets and highlighted the prospect of a September interest rate cut.
Spot gold was up 0.2 per cent at US$2,411.97 per ounce, as at 0200 GMT. US gold futures rose 0.3 per cent to US$2,452.60.
Bullion marked its worst day in nearly two weeks in the previous session, caught in the slipstream of a global, wider market sell-off amid mounting economic concerns.
US central bank policymakers pushed back on Monday against the notion that weaker-than-expected July jobs data means the economy is in recessionary freefall, but also warned that the Federal Reserve will need to cut rates to avoid such an outcome.
Fed San Francisco president Mary Daly said her mind was open to cutting interest rates as necessary and policy needed to be proactive.
Traders are pricing in a 50-basis-point cut at the Fed’s September meeting, according to CME FedWatch, with an additional cut anticipated in December.
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Lower interest rates put pressure on the US dollar and bond yields, which increase the appeal of non-yielding bullion
Markets will be looking out for US trade deficit data due later in the day and initial jobless claims data on Thursday.
Data on Monday showed US services sector activity rebounded from a four-year low in July amid a bounce back in new orders and the first increase in employment in six months.
Spot silver gained 0.2 per cent to US$27.33 per ounce, platinum was up nearly 1 per cent at US$914.90.
Palladium rose 0.8 per cent to US$856.83 after hitting on Monday its lowest levels since August 2018. REUTERS
