Newsletters
Gold prices touched a new record high on Tuesday in the opening session of Asian markets, reaching $3,505.45 at 1:46 a.m. GMT, as growing expectations of a potential Federal Reserve rate cut continued to boost demand for safe-haven assets.
As of 6:30 a.m. GMT, gold prices hover around $3,485 per ounce.
Investors are turning their attention to U.S. labor market data this week, with the government’s August nonfarm payrolls report due on Friday. The release, which tracks the number of jobs added or lost across the economy excluding farm work, will be preceded by figures on job openings and private-sector payrolls. The figures released over the past three months were far from satisfying, with only 106,000 new jobs created during the period, well below the earlier combined official estimates.
The disappointing labor data, adds to expectations that the Federal Reserve could opt for an interest rate reduction in September.
The U.S. consumer price index (CPI) for August will be published on Sept. 11, just one week before the Federal Reserve holds its next policy meeting. The data is likely to play a decisive role in shaping the central bank’s interest rate path, as policymakers weigh inflation pressures against signs of cooling in the labor market.
In July, U.S. inflation held steady at 2.7%, coming in better than expected but still above the Fed’s 2% target.
The U.S. inflation report for August, scheduled to be released on Sept. 11, a week before the Fed's policy meeting, will play a crucial role in determining the central bank's next steps.
Expectations of a widely anticipated rate cut, combined with a weaker dollar, are driving increased demand for gold. The dollar index, which tracks the U.S. currency against six major peers, stood at 97.847 on Tuesday, up 0.2% on the day but still near the five-week low reached on Monday.
Crude oil prices also edged higher on Tuesday amid concerns about potential supply disruptions stemming from the ongoing conflict between Russia and Ukraine. International benchmark Brent crude rose 0.6% to $68.58 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.6% to $65.08 per barrel.
1 min read
1 min read
