Gold Prices Surge as US Economy Shows Signs of Weakness

Overview

Gold prices rallied 1% on Tuesday, June 4, 2024, as signs of a weakening US economy fueled expectations of an interest rate cut by the Federal Reserve.

Key Points

* US economic indicators: Mixed data, with retail sales holding steady but heavy truck sales and services suggesting a slowdown.

* ISM manufacturing activity index: Declined for the second consecutive month, signaling a cooling economy.

* Construction spending: Unexpectedly fell for the second straight month.

* Dollar and bond yields: Declined, making gold more attractive as an investment.

* Market expectations: Traders see a 59% chance of a Fed rate cut in September.

Outlook and Insights

Gold's upward trend is likely to continue in the long term, driven by factors such as geopolitical tensions and central bank monetary policies. The current economic uncertainty in the US is providing additional support for gold prices in the short term.

Conclusion

Investors are closely watching the Fed's upcoming meeting for any clues about its future monetary policy stance. If the Fed signals a more dovish approach, gold prices could see further gains.

$XAU/USD(XAUUSD.FOREX)$

$iShares Gold Trust(IAU)$

$abrdn Physical Gold Shares ETF(SGOL)$

Gold, Silver & Copper Hit Highs: Will the Rally Last?

Gold reached a record high, and silver prices are near an 11-year peak, boosted by a weaker dollar. Copper is also on fire, with LME futures near record highs and New York copper futures up over 30% YTD. ------------ Will Silver hit $35 and then break through $40? What's your target price for commodities? Will the rally last?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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The current economic uncertainty in the US is providing additional support for gold prices in the short term.</p>\n<p>Conclusion</p>\n<p>Investors are closely watching the Fed's upcoming meeting for any clues about its future monetary policy stance. If the Fed signals a more dovish approach, gold prices could see further gains.</p>\n<p><br></p>\n<p><a href=\"https://ttm.financial/S/XAUUSD.FOREX\">$XAU/USD(XAUUSD.FOREX)$ </a></p>\n<p><a href=\"https://ttm.financial/S/IAU\">$iShares Gold Trust(IAU)$ </a></p>\n<p><a href=\"https://ttm.financial/S/SGOL\">$abrdn Physical Gold Shares ETF(SGOL)$ </a>&nbsp;</p></body></html>","text":"Overview Gold prices rallied 1% on Tuesday, June 4, 2024, as signs of a weakening US economy fueled expectations of an interest rate cut by the Federal Reserve. 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