Gold prices rose in European trade for the first time in four days, maintaining levels above two-week lows as market calm resumed and the yen retracted some of its gains.
The rebound in gold prices is driven by increasing speculation on US rate cuts, following bearish remarks from several Fed officials.
Prices
Gold prices increased by 0.3% today to $2,418 an ounce, with a session low of $2,394.
On Monday, gold prices fell by 1.35%, marking the third consecutive loss and reaching a two-week low of $2,364.
The losses were attributed to global market tension due to the rapid unwinding of yen carry trades and a flight from risky assets.
Fed Remarks
On Monday, Fed officials dismissed the notion that weak July jobs data signals an impending recession, but emphasized the necessity of cutting interest rates to prevent such a scenario.
San Francisco Fed President Mary Dale expressed openness to cutting interest rates as needed.
US Rates
According to the Fedwatch tool, there is a 75% chance of a 0.5% interest rate cut by the Federal Reserve in September.
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