Tags: gold | inflation | dollar | retirement | savings

Gold Gains on Dollar Retreat, Seen Hitting $3K/oz.

Gold Gains on Dollar Retreat, Seen Hitting $3K/oz.
(David Gray/Getty Images)

Monday, 24 June 2024 12:28 PM EDT

Gold prices rose Monday, helped by a pullback in the dollar, while investors looked forward to U.S. inflation data due later this week that could offer more clarity on the Federal Reserve's monetary policy.

Spot gold was up 0.3% to $2,327.81 per ounce as of 10:01 a.m. ET (1401 GMT). U.S. gold futures rose 0.4% to $2,340.80.

The dollar fell 0.5% against its rivals, making gold attractive for other currency holders.

Gold is in consolidation mode here and we see active buying on dips. Traders are looking for the trajectory of interest rates moving forward and the timing of those potential rate cuts, said David Meger, director of alternative investments and trading at High Ridge Futures.

Focus this week will on the U.S. Personal Consumption Expenditures (PCE) data, the Fed's preferred measure of inflation, which is due on Friday.

Also on the radar, at least five Fed officials will speak this week, including San Francisco Fed President Mary Daly, Fed Governors Lisa Cook, and Michelle Bowman.

Traders are currently pricing in a 66% chance of a Fed rate cut in September, according to CME FedWatch Tool.

"We believe gold can hit $3,000/oz over the next 12-18 months, although flows do not justify that price level right now," BofA said in a research note.

"Achieving this would require non-commercial demand to pick up from current levels, which in turn needs a Fed rate cut to happen. An inflow into physically backed ETFs and a pick-up in LBMA clearing volumes would be an encouraging first signal."

Lower rates reduce the opportunity cost of holding bullion.

Elsewhere, spot silver rose 0.3% to $29.60 per ounce and platinum gained 1.1% to $1,003.07.

Palladium climbed 6.3% to $1,008.32. In the previous session, prices hit a one-month high and breaking above the key level of $1,000 per troy ounce in volatile trade as some investors covered their short positions and the market was tight for nearby physical supply.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Gold prices rose Monday, helped by a pullback in the dollar, while investors looked forward to U.S. inflation data due later this week that could offer more clarity on the Federal Reserve's monetary policy.
gold, inflation, dollar, retirement, savings
322
2024-28-24
Monday, 24 June 2024 12:28 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved