Share

Saudi Arabia gold prices surge, global rates at over two-week high on rate-cut hopes

Softer U.S. jobless claims data contributed to the optimism surrounding gold
Saudi Arabia gold prices surge, global rates at over two-week high on rate-cut hopes
Markets now await the U.S. producer price index and consumer price index data due next week

Gold prices saw an increase on Friday, set for their best weekly performance since April 5, after recent economic data supported speculations of a Federal Reserve interest rate cut.

In Saudi Arabia, 24-carat gold saw a 1.09 percent increase to SAR284.17 per gram and SAR8,838.35 per ounce.

Globally, spot gold saw a 0.35 percent increase to $2,354.61 per ounce, as of 5:19 GMT, after reaching a more than two-week high earlier in the session. So far this week, gold prices have risen over 2.2 percent. Meanwhile, U.S. gold futures saw a marginal 0.93 percent increase to $2,361.95.

Impact of economic data

Recent economic indicators, including data on unemployment benefits, have contributed to the optimism surrounding gold prices. The increase in new jobless claims has raised concerns about the health of the labor market, bolstering expectations of an easing cycle by the Federal Reserve. Hence, softer U.S. macro data has again supported interest in gold, particularly amidst signs of weakening job market conditions.

Traders are anticipating the Federal Reserve to initiate an interest rate cut as early as September. Lower interest rates diminish the opportunity cost of holding gold, thus supporting its demand and prices. The forthcoming inflation reports should influence market dynamics, with potential implications for the Fed’s rate-cutting timeline. Hence, a dip in inflation could further bolster gold’s attractiveness as an investment asset. Markets now await the U.S. producer price index and consumer price index data due next week.

Read: Oil prices rise on strong Chinese demand, weakening U.S. labor market

Other precious metals

In addition to gold prices, spot silver saw gains, rising 0.18 percent to $28.38 per ounce, on track for its best week since April 5. Meanwhile, platinum and palladium registered increases of 0.67 percent and 0.59 percent to $984.55 and $972.70 respectively, signaling weekly gains for both metals and reflecting broader market optimism.

For more news on markets, click here.

Disclaimer: The content of this article is intended for informational purposes only.It does not constitute advice on tax and legal matters; neither are they financial or investment recommendations. Refer to our full disclaimer policy here.