Gold prices soars ahead of economic data, silver advances by 0.5%

On Monday, gold prices rose as investors awaited the release of important economic data and the remarks of Federal Reserve officials later in the week. They were hoping for more information about when the U.S. central bank may make interest rate adjustments, something the bank has hinted at.

At 1306 GMT, spot gold increased by 0.5% to $2,175.21 an ounce, and silver increased by 0.5% to $24.78.

The weekly initial unemployment claims report, which is due out on Thursday, and the release of the U.S. core personal consumption expenditure (PCE) price index data, which is slated for Friday, are of special interest to investors.

“Higher-than-expected PCE figures may prompt spot gold to pare some of its month-to-date gains,” stated Han Tan, chief market analyst at Exinity Group, as reported by Reuters.

“Furthermore, as Fed Chair Powell himself stated last week, a sudden and unexpected deterioration in the US jobs market may jolt the Fed into a more aggressive policy easing cycle, which in turn would be a boon for gold bugs.”

Powell’s statement last week that the U.S. central bank is still on track to cut rates by 75 basis points by the end of 2024 caused gold prices to soar to previously unheard-of heights.

Palladium increased by 3.6% to $1,020.45 while platinum increased by 1.8% to $909.70 in the autocatalyst market.

Heraeus analysts said in a note that after the new U.S. pollution rules went into effect last week, the palladium market will continue to see demand from the automobile industry.