Gold Gains Amid US Rate Cut Speculations; Silver Reaches 14-Year Peak

Gold and Silver Prices Surge

• Gold Price Increase: On September 1, gold reached a four-month high, rising 0.7% to $3,470.69 per ounce, the highest level since April 23. U.S. gold futures for December delivery also increased by 0.8%, reaching $3,543.70.
• Silver Price Milestone: Silver prices rose 1.6% to $40.31 per ounce, marking the first time it surpassed $40 since September 2011.

Market Influences

• Federal Reserve Rate Cut Speculation: Increased expectations for a U.S. Federal Reserve interest rate cut this month have enhanced gold's appeal. Analysts noted that dovish comments from Fed's Mary Daly contributed to this sentiment, despite a higher core Personal Consumption Expenditures (PCE) reading.
• Tariff Ruling Impact: A U.S. appeals court ruling deemed most of former President Trump's tariffs illegal, which is expected to further weaken the U.S. dollar and support gold prices.

Economic Indicators

• PCE Data: The U.S. Personal Consumption Expenditures price index rose by 0.2% month-on-month and 2.6% year-on-year, aligning with market expectations.
• Rate Cut Probability: Traders are currently pricing in an 87% likelihood that the Fed will implement a 25 basis point rate cut later this month.

Upcoming Data and Trade Developments

• Focus on Non-Farm Payrolls: Attention is now on the upcoming U.S. non-farm payrolls data, which could influence the Fed's decision regarding the expected rate cut.
• Ongoing Trade Talks: U.S. Trade Representative Jamieson Greer confirmed that discussions with trading partners continue, despite the recent court ruling on tariffs.

Other Precious Metals

• Platinum and Palladium Gains: Platinum prices increased by 0.9% to $1,376.95, while palladium rose by 0.8% to $1,118.12, reflecting a broader positive trend in precious metals.