5 July 2024
Gold is poised for its second consecutive weekly gain, driven by expectations of potential Federal Reserve interest rate cuts before the end of the year. This optimism stems from recent data indicating a contraction in the U.S. services sector and a softening labor market. Investors are now eagerly awaiting Friday’s U.S. payrolls report for further insights into the economic outlook. Gold’s appeal has been bolstered by a weakening U.S. dollar and falling Treasury yields. The precious metal’s upward trend extends its three-quarter rally, supported by significant central bank purchases, geopolitical tensions, and increased buying in Asia as investors seek to preserve value amid local currency depreciation.