Gold Trades Near Six-Week Peak Ahead of U.S. Inflation Data
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Gold held steady on Friday, poised for its sixth straight weekly increase, as investors awaited U.S. inflation figures that may strengthen expectations for Federal Reserve rate reductions later this year. The dollar dipped after August’s core personal consumption expenditures (PCE) index—closely monitored by the Fed—met forecasts, rising 0.2% month-on-month and 2.9% year-on-year. Despite remaining above the Fed’s 2% goal, analysts believe the readings are unlikely to derail policymakers who have hinted at two more 25-basis-point cuts by year-end.
On Comex, December gold futures inched up 0.56% to $3,792.40 an ounce on Friday, lifting week-to-date gains to 1.8%. Gold has surged 7.3% in September, following a 5% jump in August and a 1.2% uptick in July. Year-to-date, bullion is up 43%, adding to a 27% rally in 2024—its strongest annual performance since 2010.
U.S. data on Thursday delivered mixed signals. Second-quarter GDP expanded at its quickest pace in almost two years, driven by strong consumer spending, while weekly jobless claims dropped to their lowest since July. On Wednesday, the Fed implemented its first rate cut in nine months—25 basis points to a 4.00%–4.25% band—and futures markets now assign roughly an 85% probability to another cut in October, per the CME FedWatch Tool.
Precious Metals Roundup
• Silver: Front-month Comex silver climbed 2.1% on Thursday to $45.11 an ounce, bringing this week’s advance to 5%. Silver has gained 11% in September and 23.5% over the past two months.
• Palladium: Spot palladium rose 3% on Thursday to $1,258.00 an ounce, extending its four-day rally to 8.7% and marking a 13% increase this month.
• Platinum: The metal jumped 3% on Thursday to $1,526.40 an ounce, reflecting an 8% gain this week and a 12% rise in September.
On the supply front, Reuters reported that China’s net gold imports via Hong Kong dropped 39% in August from July, based on data from the Hong Kong Census and Statistics Department.
With the Federal Reserve expected to continue easing, lower rates should remain supportive for gold and other non-yielding precious metals.
📊 Market Context & Insight
In Malaysia, current gold trends are shaped by the Ringgit’s fluctuations, Bank Negara Malaysia’s policy moves, inflation levels, and global gold benchmarks. Local demand is driven by cultural customs, jewelry purchases, and investment appetite among households and corporations.
💡 What This Means for Malaysian Investors
Malaysian investors view gold as a safeguard against currency swings, inflation, and global volatility. They often diversify via physical jewelry, gold bars, Gold Investment Accounts (GIAs) from banks like Maybank and CIMB, and Bursa Malaysia Gold Futures (FGLD). Aim to balance between physical and paper gold to meet your long-term objectives.
🔗 Useful Resources
Note: This article was auto-fetched from trusted news sources. For educational purposes only. Please verify with official financial advisors or licensed institutions in Malaysia before making investment decisions.
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