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Gold Silver Price Today:What effect will the weaker than expected US economic data have on gold prices? It is believed that the US macro data released on Wednesday night is indicating a slowdown in economic growth. In view of this, it is expected that the Federal Reserve, the central bank of the US, may cut interest rates in early September. Amidst this speculation, gold prices fell marginally on Thursday, July 4. Whereas in the previous trading session it had reached the highest level in two weeks.
Earlier, the US data released on July 3 showed signs of slowing down of the economy, after which gold declined in the global market during early trade. Not only is there weakness in the service sector and ADP employment data in the US, but last week there has also been an increase in initial applications for unemployment benefits in the US. After this, investors are now eagerly waiting for the US Non-Farm Payrolls (NFP) data, which is to be released on Friday, July 5.
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The price of gold may go up to $2,400
According to Reuters, City Index senior analyst Matt Simpson has said that if the NFP data also confirms the signs of economic slowdown that are visible in the rest of the data, then the price of gold can go up to $ 2,400 an ounce. Simpson also said that the US dollar index is unlikely to reach 106 soon. According to the CME FedWatch Tool, the market now believes that there is a 73% chance that interest rates may be cut in the US Fed meeting in September. When interest rates are low, the opportunity cost of holding assets like gold is reduced, making it more profitable to hold gold.
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What are support and resistance levels?
Jatin Trivedi, Vice President Research Analyst (Commodity & Currency), LKP Securities, said that “Due to the US Independence Day holiday, volume and participation in commodity markets were low. Gold remained at $2355 an ounce in the international market, while in the Indian market it remained stable around Rs 72,350 per 10 grams. The key macro data to be released in the US on Friday, July 5, 2024 includes unemployment and non-farm payroll data, which can significantly influence the further decisions of the US Fed. If the unemployment rate remains high and the non-farm payroll data comes weak, then gold prices will get support. Whereas if unemployment decreases, the pressure on gold will increase. Trivedi said that the support level of gold is currently seen at Rs 71,800 per 10 grams and the resistance at 72,850.”
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