Gold

Gold futures rallied strongly today, driven by the European Central Bank's (ECB) historic rate cut, a weakening US dollar, and growing anticipation surrounding Friday's U.S. jobs report.

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Gold futures experienced a tumultuous rise and fall this week as traders grappled with mixed economic data and uncertainty surrounding the Federal Reserve's interest rate outlook. After surging nearly 1% on Monday, the precious metal encountered strong selling pressure on Tuesday, erasing the previous day's gains.

Gold futures found renewed strength on Monday, closing back above the crucial 50-day moving average, as economic data fueled expectations of potential interest rate cuts by the Federal Reserve later this year.

Gold futures for the August 2024 contract, now the most actively traded, experienced a double-digit decline on the last trading day of May. In New York, the August contract closed at $2,345.60 per troy ounce, down $20.70 or 0.81%. This daily drop contributed to a weekly decline of $11.10 or 0.47%. However, gold still managed to eke out a monthly gain of $21.10 or 0.91% in May.

Gold futures basis the August 2024 contract, which is now the new most active contract had fractional gains today. In New York trading the August contract is currently fixed at $2366.50 after factoring in a gain of $2.40, or 0.10%. Currently, gold futures have resumed trading in Australia fixing the August contract at $2364.40 a $2.10 decline from the closing price in New York.

Gold prices fell sharply on Wednesday, as U.S. dollar gains and climbing Treasury yields sparked concerns over the Federal Reserve's anticipated path of interest rate cuts this year.

The precious metal's decline came ahead of a critical inflation report due on Friday, with investors bracing for potential surprises that could force the Fed to recalibrate its monetary policy outlook.

Gold futures rebounded strongly after last week's price pullback. As of 4:55 PM ET, gold futures for the June 2024 contract surged $27.10, settling at $2,361.80. With the June contract nearing its first notice day, the August 2024 gold futures contract will soon become the most actively traded. Currently, the August 2024 contract is up $27.40, trading at $2,384.30.

The gold futures market experienced a rollercoaster ride this week, reaching historic highs before succumbing to a dramatic selloff. On Monday, the most active June 2024 contract opened at $2,422.20, soared to an intraday high of $2,454.20, and settled at a record-breaking $2,438.50. This momentous achievement, however, was short-lived.

Gold futures experienced a dramatic selloff over the past two trading days, plummeting by more than $88 per ounce, as the release of the Federal Open Market Committee (FOMC) meeting minutes fueled concerns about a more hawkish Federal Reserve.