Gold moves in a positive zone ahead of US data

Gold prices rose in European trade on Wednesday, moving once again in a positive zone as US 10-year treasury yields weakened.

Investors await important US data later today, expected to provide fresh pricing for the odds of Fed rate cuts this year.

Prices 

Gold prices rose 0.6% today to $2341 an ounce, with a session-low at $2325.

Gold lost 1% on Tuesday, resuming losses and moving away from four-week lows at $2314. 

US Yields 

US 10-year treasury yields traded near three-week lows on Wednesday at 4.313%, buoying non-yielding assets.

The decline came after a spate of weak US data, which bolstered the case of multiple Fed rate cuts this year. 

Grim Data

Recent data showed US manufacturing shrank again in May, while construction spending fell unexpectedly, indicating a slowdown in US growth.

Following the data, the odds of a September interest rate cut in September rose to 65%, and to 78% in November according to the Fedwatch tool. 

Fresh Data

Now investors await fresh important data on US private sector employment, in addition to US services data. 

The SPDR 

Gold holdings at the SPDR Gold Trust remained flat yesterday at 532.21 tonnes, the lowest since May 10.