Gold steadied above $2,000 an ounce as traders digested the latest data from the US and its potential impact on the Federal Reserve’s interest-rate path.
(Bloomberg) — Gold steadied above $2,000 an ounce as traders digested the latest data from the US and its potential impact on the Federal Reserve’s interest-rate path.
Recession concerns increased after data on Wednesday showed the US service sector expanded in March at a much slower pace than projected, while companies added fewer jobs than forecast. Swaps traders raised their bets for rate cuts later this year on concerns the economy was cooling.
Bullion is now in sight of a record high after surging in March due to turmoil in the banking sector. Investors will be closely watching for more signs the Fed may be taking the heat out of the economy and putting the brakes on inflation when crucial monthly figures on nonfarm payrolls and unemployment are released on Friday.
Data on US initial jobless claims is due later on Thursday, and is forecast to show a slight rise in those filing for unemployment benefits.
Spot gold declined 0.2% at $2,017.01 an ounce as of 8:55 a.m. in London, after earlier in the week surging to the highest since March 2022. The Bloomberg Dollar Spot Index was flat. Silver was steady, platinum gained, while palladium declined.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.