Gold looses momentum, hits $2,292.40 on Thursday

Gold prices edged down on Thursday, to $2,292.40 per ounce at 8:30 am GTM, after reaching $ 2,304 earlier in the session, according to www.kitco.com.

Federal Reserve officials hinted at potential interest rate cuts in 2024, while awaiting key US jobs data, as reported by Reuters.

The rise in gold prices is driven by global currency depreciation against the US dollar, prompting investors to seek gold as a hedge, Reuters reported.

Federal Reserve officials, led by Jerome Powell, emphasised the need for further discussion and data before considering interest rate cuts, expected in June, as per the same news agency.

The US services industry growth slowed in March, supporting a favourable inflation outlook, the news agency said.

The upcoming US jobs report and inflation data will provide further insights. A weaker job market could lead to a positive impact on gold prices, as lower interest rates reduce the opportunity cost of holding gold, it added.

In other metals, spot silver declined to $27.08 per ounce, platinum slightly dropped to $935.39, and palladium increased to $1,017.83, according to Reuters.