Gold rebounds after hitting one-month low — all eyes now on U.S. data
Gold prices inched higher on today as savvy investors pounced on the yellow metal’s recent slump, following a dramatic drop to its lowest level in over a month during the previous session.
As of 00:33 GMT, spot gold edged up 0.2% to $3,183.20 an ounce, while U.S. gold futures slipped slightly by 0.1% to $3,185.60.
The bounce came after gold nosedived on news of a trade deal breakthrough between Washington and Beijing — a surprise move that momentarily cooled global tensions and rattled gold’s safe-haven appeal. Prices plummeted to levels last seen on April 10, raising eyebrows across trading floors. But seasoned investors saw opportunity in the chaos.
Now, the global markets are holding their breath for the U.S. Producer Price Index (PPI) data due later today — a key economic indicator that could shape the Federal Reserve’s next move. The release follows a wave of weaker-than-expected consumer data, intensifying speculation over when the Fed will begin slashing interest rates.
Market whispers hint at a 50 basis point rate cut this year, possibly starting in October, which would typically boost non-yielding assets like gold.
Gold, often dubbed the “crisis metal,” thrives in times of economic uncertainty and low interest rates. With global uncertainty still looming large, today’s data could either reinforce or undermine the bullish sentiment.
Meanwhile, in the world of precious metals:
- Silver slipped 0.2% to $32.16/oz
- Platinum surged 0.8% to $984.05/oz
- Palladium climbed 0.3% to $953.75/oz
