Gold Prices Begin to Slightly Increase
- 2023-07-05
- Posted by: Widyadhana Mufida
- Categories: Commodities, News
Gold prices began to rise slowly. Based on trading on July 4, 2023, the price of gold on the spot market was at USD 1,925.09 per troy ounce. The price showed a slight increase, which was 0.19%.
Reported by cnbcindonesia.com, this increase extended the positive trend in gold which has strengthened since Thursday last week (29/06/2023). In four trading days, gold prices managed to strengthen by 0.93%.
The price of gold is improving because market players are starting to see a good hope. This hope comes from the softening of the United States (US) central bank The Federal Reserve (The Fed), due to slowing US manufacturing activity data. This is a signal that the US economy is slowing down, so that inflation is also expected to continue to fall
Other than that, S&P Global Data showed US manufacturing PMI slowed to 46.3 in June. The index is the lowest in six months. The US PMI has also been in a contractionary phase for the second month in a row.
“Weak US economic data has become a backbone for gold. Market players will be watching US employment data closely,” said UBS analyst Giovanni Staunovo as quoted by Reuters.
Market players are waiting for the minutes of the June Federal Open Market Committee (FOMC) meeting. Which will be out later today. Investors also expect the minutes to confirm the Fed’s hawkish policy. Investors are now betting 86% if the Fed will raise its benchmark interest rate by 25 bps in July this year.
“If there is an increase of 50 bps, then the price of gold will be very depressed.” said ABC Refinery analyst Nicholas Frappell.