Gold prices edged down on Tuesday after rising 1% in the previous session as investors awaited US jobs data due later this week for clues on the Federal Reserve’s interest rate trajectory.
Gold and the Dollar Now
Gold futures are now down 0.2% to $2362 an ounce. Spot gold is down about 0.36% to $2342 an ounce. On the other hand, the dollar index is up 0.04% to 104.115 points.
Other Metals
Among other precious metals, silver fell 0.4% in spot trading to $30.62 an ounce, platinum rose 0.8% to $1019.70, and palladium gained 0.5% to $922.28.
Oil Continues Losses
Oil prices fell in Asian trading today, Tuesday, continuing losses from the previous session when prices fell to their lowest levels in four months, with investors concerned about rising supplies later in the year amid cautious demand expectations from major consumers in the United States.
According to the New York Mercantile Exchange, July crude oil futures were trading at USD73.72 per barrel at the time of writing, down 0.67%. The session low was USD73.58 per barrel. Crude oil may find support at USD73.58 and resistance at USD79.42. The dollar index futures, which measures the performance of the US dollar against a basket of six other major currencies, rose 0.06% to trade at USD104.02.
Meanwhile, on Nymex, Brent August crude fell 0.61% to trade at USD77.88 per barrel, while the spread between Brent and WTI crude stands at USD4.16 per barrel.
Euro Extends Gains to 3-Month High on Interest Rate Spread Gap
The euro is trading above the $1.09 barrier for the first time since last March The European Central Bank is preparing to cut interest rates for the first time since 2024. Receding chances of further interest rate cuts in Europe this year
The euro rose in the European market on Tuesday against a basket of global currencies, extending its gains for the fourth consecutive day against the US dollar, surpassing the 1.09barrier to record its highest level in three months,due to renewed hopes of narrowing the interest rate gap between Europe and the United States before the end of this year.
The euro ended Monday’s trading 0.55% higher against the dollar, in its third consecutive daily gain and its biggest gain since May 15, thanks to a drop in US yields after the release of weak data in the United States.European interest rateInflation data released late last week in Europe reduced the chances of further interest rate cuts in Europe this year. Markets have reduced the pricing of cuts from 75 basis points to less than 50 basis points this year from the European Central Bank.
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