US economic data cooling boosts rate cut expectations, gold price continues to rise

According to Zhitong Finance, on the eve of the release of the US non-farm payroll data, as the market expects the Federal Reserve to cut interest rates before the end of the year, the price of gold has continued to rise weekly, and investors are looking for the next batch of clues about the US economic outlook. Spot gold rose more than 1% this week, trading above $2360 per ounce. Silver also benefited from the rise in gold prices, rising to $31 per ounce. As of the time of publication, spot gold rose by 0.2% to $2360.62 per ounce, while the Bloomberg Dollar Spot Index and 10-year US Treasury yields both fell this week. Silver rose nearly 5% this week, and platinum and palladium prices also rose.

The report released on Wednesday showed that the US service sector shrank at the fastest pace in four years, while there were further signs of softening in the US job market. The US non-farm payroll report is expected to show a slowdown in hiring and wage growth. According to the median estimate of the survey, the number of non-farm jobs in the US in June is expected to increase by 190,000. The unemployment rate remains at 4%, the highest level in over two years. If inflation continues to decline, economic slowdown may prompt the Federal Reserve to lower borrowing costs, which would be favorable for gold.

Gold prices continued to rise this week, extending the upward trend for three consecutive quarters, with gold prices hitting a historic high in May. Central bank bond purchases and geopolitical tensions have driven the rise in gold prices. With Asian currencies depreciating, investors are seeking safe-haven assets, and Asian buying has also been boosted