Gold steady as US Federal Reserve remarks counter safe-haven demand

Feb 8, 2024



gold prices held steady on Thursday as a pushback from US Federal Reserve Market officials hope soon interest rate cut offset demand for safe haven Israel has rejected Hamas' ceasefire proposal amid ongoing talks to end it. Gaza conflict,
As of 0427 GMT, spot gold stood at $2,033.56 an ounce. US gold futures fell 0.1% to $2,049.00 an ounce.
On the one hand, there remain enough geopolitical concerns to keep safe-haven buying on the agenda, which is limiting gold's downside, but on the other hand, the potential rate, said Tim Waterer, chief market analyst at KCM Trade. But time is getting delayed. -The cut is acting as a cap on gold's immediate upside potential.
Fed officials want to put off cutting interest rates until they are confident that inflation has dropped to 2%.
Higher interest rates increase the opportunity cost of holding bullion.
Bullion's decline was limited as concerns remained over the US regional banking sector after Moody's downgraded New York Community Bancorp to junk, citing pressure on funding and liquidity.
Gold, considered a safe investment, rises in times of political and economic uncertainty.
Investors will keep an eye on US weekly jobless claims data due at 1330 GMT, after last week's monthly non-farm payrolls report came in stronger than expected, signaling continued strength in the labor market.
Spot palladium fell 0.2% to a five-year low at $893.16 an ounce.
“The demand picture doesn't look great at the moment, whether it's as a result of the shift in the automotive industry (EVs), or because of industrial sector problems in countries like Germany and China,” Wetter said. Momentum and sentiment are strongly favoring palladium. Are against the price.” Said.
Spot silver rose 0.2% to $22.24 an ounce and platinum rose 0.1% to $880.05.



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