Gold gains amid mixed US inflation, labor data

Gold gains amid mixed US inflation, labor data
The metal is up 25% so far in 2024.
OCT 11, 2024
By 

Gold pared a weekly decline, after hotter-than-expected inflation and a slowdown in the labor market amplified debate over the size of the Federal Reserve’s expected interest rate cut next month.

Bullion rose as much as 0.7% to trade at $2,647.25 an ounce, building on gains made in the previous session that came after mixed US economic data. Separate US reports on Thursday showed underlying inflation rose more than forecast in September, while applications for unemployment benefits last week increased to a more than one-year high.

Fed policymakers John Williams, Austan Goolsbee and Thomas Barkin were unfazed by the higher-than-expected consumer price index, suggesting officials can continue lowering rates.

Swaps markets are pricing in a 25-basis-point cut in November, with traders focusing on the potential challenges for policymakers as they attempt to keep inflation under control without cooling the jobs market too much. Lower interest rates typically benefit gold, as it doesn’t pay interest.

The precious metal is up more than 25% this year, with rate-cut optimism fueling recent gains. Strong central bank purchases and heightened geopolitical tensions have also supported gold. Hostilities in the Middle East have increased, stoking haven demand, with investors on edge as Israel plans its retaliation against Iran.

Spot gold rose 0.4% to $2,639.00 an ounce as of 8:20 a.m. in London, on track for a weekly fall of 0.4%. The Bloomberg Dollar Spot Index was flat. Silver was down, while platinum and palladium climbed.

 

Latest News

Wells Fargo taps TD veteran to help get new RIA unit off the ground
Wells Fargo taps TD veteran to help get new RIA unit off the ground

George Tamer, recently named as the "channel enablement leader" at Wells Fargo, worked at TD Ameritrade for 20 years until 2021.

Two RIA firms welcome former UBS senior vice presidents as advisors
Two RIA firms welcome former UBS senior vice presidents as advisors

Industry veterans make the move to expanding firms.

Half of retirees reveal they saved less than they need for their retirement
Half of retirees reveal they saved less than they need for their retirement

Credit card balances have increased as spending beats expectation.

US stocks saw $20B inflows following election result
US stocks saw $20B inflows following election result

BofA says it was the biggest single day gain in five months.

Bond traders focus on Trump rather than Fed cuts
Bond traders focus on Trump rather than Fed cuts

Markets wanted greater signals on Fed's future moves.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.