- Gold rose 1% to settle at $4,415.91/oz, while gold futures gained 1.1% to settle at $4,473.30/oz.
- Gold rose for a third straight session on Tuesday as fears of a U.S. interest rate hike next month eased, with investors awaiting minutes from the Federal Reserve's latest meeting for fresh clues on the monetary policy path.
- The probability of the central bank holding rates steady in September stands at about 63%, while the chances of a quarter-point hike are at nearly 37%.
- Market pricing for a September quarter-point hike flipped to a near-65% chance of a hold after unexpected job losses in July, lower-than-expected consumer price inflation and weaker retail sales.
- Market focus will be on the minutes of the Fed's most recent policy meeting, due to be released on Wednesday.
- Spot gold was up 0.2% at $4,424.28 per ounce by 0130 GMT, while U.S. gold futures for December delivery edged 0.2% higher to $4,480.90.
- Gold is extending its gains 'after last week's soft U.S. economic data, which has raised hopes that the Fed will keep rates on hold this year,' IG market analyst Tony Sycamore said.
- The U.S. central bank will keep its key interest rate unchanged next month and through year-end, according to most economists.
- Retail earnings data to be released this week paired with minutes from the Federal Reserve’s July meeting will offer significant clues about the health of the consumer as well as where the committee as a whole stands regarding monetary policy.
Gold prices rose 1% to $4,415.91 per ounce on Tuesday, marking a third consecutive session of gains as fears of a U.S. interest rate hike eased.
Gold futures also increased by 1.1%, settling at $4,473.30 per ounce.
Market analysts attribute this rise to recent soft U.S. economic data, which has bolstered expectations that the Federal Reserve will maintain its current interest rates through the end of the year.
According to the CME FedWatch tool, the probability of the Fed holding rates steady in September stands at about 63%, while the chances of a quarter-point hike are nearly 37%.
“Retail earnings data to be released this week paired with minutes from the Federal Reserve’s July meeting will offer significant clues about the health of the consumer,” said José Torres, senior economist at Interactive Brokers.9
Market focus is now on the Fed's minutes, which are expected to provide further insights into the committee's stance on monetary policy.
The market's pricing for a September quarter-point hike has shifted to a near 65% chance of a hold following unexpected job losses in July, lower-than-expected consumer price inflation, and weaker retail sales.
As investors await the Fed's guidance, gold continues to attract attention as a safe-haven asset amidst economic uncertainty.
“Gold rose for a third straight session as market pricing for a September rate hike flipped to a near-65% chance of a hold following unexpected job losses and weaker retail sales. José Torres, senior economist at Interactive Brokers, noted that upcoming retail earnings data will provide significant clues about consumer health and monetary policy direction.”
