Gold parks at two-week high as US yields weaken

Gold prices rose in European trade on Thursday, expanding for the second straight day and scaling a two-week high as US 10-year treasury yields weakened.

A string of weak US data this week boosted the odds of multiple Fed rate cuts this year.

Now investors await US unemployment claims data today, and the crucial payrolls report tomorrow. 

Prices

Gold prices rose 0.8% today to $2375 an ounce, the highest since May 23, with a session-low at $2354. 

On Wednesday, Gold rose 1.25%, the second profit in three days as US yields declined.

US Yields 

US 10-year treasury yields traded near two-month lows at 4.275%, in turn boosting non-yielding assets. 

Across this week, a string of weak US data underpinned the odds of multiple Fed rate cuts in 2024.

Grim Data

Recent US data showed the US manufacturing sector and construction spending fell sharply in May.

Also US job opportunities showed a noticeable decline in April as tight labor conditions eased.

And finally, the US private sector added less jobs than expected in May. 

US Rates 

Following the data, the odds of a Fed 0.25% rate cut in September rose to 67%, and the odds of such a cut in November rose to 80%.

Fresh Data

Now investors await important US unemployment claims data and the payrolls report for May to help determine the likely path ahead for monetary policies. 

The SPDR 

Gold holdings at the SPDR Gold Trust rose 1.44 tonnes yesterday to a total of 533.65 tonnes, the highest since May 17.