On Friday (local time June 21st), gold fell by over 1%, but with expectations of a U.S. rate cut in the second half of the year, gold is set to rise for the second week in a row. As of 11:00 a.m. Eastern Time in the U.S., spot gold was trading at $2,331.24 per ounce, down 1.2%, while New York 3-month gold futures fell 0.8% to $2,350.40 per ounce.
However, gold prices have risen by about 0.6% so far this week, up 1.7% from the previous week.
New York-based independent metals trader Tai Wong stated in a report, “Gold has been supported this week by a series of weak economic data, with traders continuing to see bad news as ‘good news,’ which could lead to earlier and more rate cuts.”
Data released on Thursday showed a slight decrease in initial jobless claims in the U.S. last week, accompanied by a decline in housing starts. Combined with soft retail sales performance last month, the possibility of a rate cut in September still exists. The market currently expects the Fed to cut rates once or twice this year, by 25 basis points each time.
Meanwhile, palladium rose by 7.5% to $995.50 per ounce, nearing a one-month high. Palladium is a crucial metal component in catalytic converters for cars. However, spot palladium prices are still down 10% year-to-date, and 39% from 2023.
StoneX analyst Rhona O’Connell mentioned, “The palladium market was very tight this morning, and relatively tense throughout the week. With the end of the quarter (sometimes the financial year) approaching next week, there may be some closing-related covering.”
In other aspects, platinum rose by 1.3% to $996.59 per ounce, while silver fell by 2.9% to $29.85 per ounce. Like gold, both these precious metals have risen weekly.
