Gold Edges Higher As Traders Weigh US Economy, Fed Rate Path

Gold edged higher as investors assessed the outlook for Federal Reserve rate cuts after resilient US jobs and retail data eased concerns about the world’s largest economy.

Bullion traded around $3,350 an ounce, practically unchanged for the week. US initial jobless claims declined to the lowest level since mid-April, while retail sales advanced in June. Swaps were pricing less than a 60% chance of a quarter-point interest-rate reduction in September and no probability of easing this month. 

Still, San Francisco Fed President Mary Daly said it’s reasonable for policymakers to plan on two cuts this year, emphasizing that the central bank should not wait too long before acting. Pressure is mounting from US President Donald Trump for them to ease monetary policy. 

Traders will now watch for the outcome of a gathering of Fed officials at the end of this month to get a clearer sense of their policy direction. Gold is typically disadvantaged in a high-rate environment as it doesn’t offer interest.Despite the recent lack of momentum, gold has climbed more than a quarter this year, with geopolitical tensions and concerns about dollar-denominated assets sparking flight to the haven asset. The precious metal has been trading within a tight range over the past few months, as investors wait for a clearer sense on US talks with a raft of trade partners, the path for rate cuts, and the impact of tariffs on the global economy.

Gold rose 0.4% to $3,351.30 an ounce at 11:25 a.m. in London. The Bloomberg Dollar Spot Index dipped 0.2%. Silver rose 0.5%. Platinum also edged higher, remaining close to the highest in a decade. Palladium rose to the highest in nearly two years. 

Despite the recent lack of momentum, gold has climbed more than a quarter this year, with geopolitical tensions and concerns about dollar-denominated assets sparking flight to the haven asset. The precious metal has been trading within a tight range over the past few months, as investors wait for a clearer sense on US talks with a raft of trade partners, the path for rate cuts, and the impact of tariffs on the global economy.

Gold rose 0.4% to $3,351.30 an ounce at 11:25 a.m. in London. The Bloomberg Dollar Spot Index dipped 0.2%. Silver rose 0.5%. Platinum also edged higher, remaining close to the highest in a decade. Palladium rose to the highest in nearly two years.