Posted 7th junio 2024

Gold Price News: Gold Climbs to Two-Week High Above $2,370 An Ounce

Gold prices rose for a second day on Thursday to reach their highest since May 23, taking support from data showing a higher-than-expected rise in US jobless figures.

Gold climbed as high as $2,378 an ounce on Thursday, and prices were quoted at around $2,370 to $2,375 an ounce by late afternoon. That compared with around $2,355 an ounce in late deals on Wednesday.

KAU/USD 1-hourly Kinesis Exchange

Thursday’s move represented a second straight day of gains for the yellow metal, after a lacklustre first half of the week, taking prices to a two-week high.

US initial jobless claims figures released Thursday showed a larger-than-expected increase in the number of Americans seeking unemployment benefits, coming in at 229,000 in the week to June 1, compared with market expectations of 220,000. Any signs of a weaker economy suggest increased pressure on the US Fed to cut interest rates – a bullish factor for non-yielding gold.

US 10-year treasury bond yields were broadly steady on Thursday, hovering at a two-month low, and this downward move has provided an additional supportive element for gold prices.

Elsewhere, the European Central Bank cut interest rates by 25 basis points to 4.25% as expected on Thursday, after nine months of steady rates. While the move is less significant for gold than a US Fed rate cut, it nevertheless highlights that recent expectations over the start of an interest rate-cutting cycle have started to materialise among major central banks.

Looking ahead, all eyes will be on the monthly US non-farm payrolls figures for May on Friday as well as the US unemployment rate for May, for further signals on possible interest rate changes in the coming months. ECB President Christine Lagarde is also set to give a speech on Friday afternoon, following Thursday’s decision to cut interest rates to 4.25%.

Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Read our Editorial Guidelines here.