Market Recap | 04-July-2024

Gold prices held steady at a 10-day high in Asian trading on Thursday, buoyed by expectations of Federal Reserve interest rate cuts, which weakened both the dollar and Treasury yields.

However, gold’s upward movement was tempered by cautious sentiment from the minutes of the Fed’s June meeting, and traders remained wary ahead of key nonfarm payroll data. Spot gold edged up 0.1% to $2,359.56 per ounce, while gold futures for August dipped slightly by 0.1% to $2,367.15 per ounce.

On Wednesday, gold experienced significant gains following a sharp decline in the dollar as traders increased their expectations for a rate cut in September.

Meanwhile, oil prices retreated from two-month highs in Asian markets on Thursday as traders took profits following a strong rally earlier in the week. Concerns about long-term U.S. economic demand emerged after weak economic data. This is despite a significant drop in U.S. inventories and ongoing tensions in the Middle East that are supporting prices.

In currency markets, the Japanese Yen strengthened against the U.S. Dollar on Thursday. The USD/JPY pair pulled back from a peak not seen since 1986, with traders closely monitoring movements in the Yen amidst potential intervention by Japanese authorities to prevent excessive depreciation.