24-Aug-2024 13:03

COMEX Gold futures soared as a break above $2500 per ounce extended amid hopes of a cut in US interest rates in near term. The metal hit fresh highs near $2550 per ounce after The US Federal Reserve Chair Jerome Powell stated that Fed is prepared to start cutting its key interest rate from two decade high year high. Gold has rallied impressively in the week gone by with lows near $2500 per ounce triggering good buying. The US dollar index has been on a downward trajectory even before dovish comments from Powell as economic growth and labour markets hinted towards moderation. Atlanta Fed has sharply lowered its third-quarter growth projection for the US economy. Real gross domestic product seasonally adjusted annual growth estimate, based on the Atlanta Fed's GDPNow model was cut to 2% from 2.9%. This has taken a toll on the Dollar index which slumped to around 100.50 mark, testing lowest levels since December 2023. Meanwhile, the labour market is witnessing signs of stress. Recent weekly unemployment claims data showed that continuing claims, a reading on the number of people receiving ongoing unemployment assistance increased by 4,000 to 1.863 million in the week ended August 10th, reaching the highest level since November 2021. The four-week moving average of continuing claims also climbed to the highest level since November 2021, rising by 4,750 to 1,865,500.

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