Gold price prediction: Experts predict latest gold rate projections for August first week

Gold rates rose almost 2 per cent, hitting a one-week high, on Friday. Spot gold reached its highest level since July 25, adding 1.8 per cent to $3,350.67 per ounce, after rising as much as 2 per cent earlier today. Bullion was up 0.4 per cent so far this week. U.S. gold futures rose 1.6 per cent to $3,403. This came after weaker-than-expected U.S. payrolls data boosted Federal Reserve rate cut expectations and fresh tariff announcements spurred safe-haven demand.

U.S. job growth slowed more than expected in July, with nonfarm payrolls increasing by 73,000 jobs last month, after rising by a downwardly revised 14,000 in June, the Labor Department's Bureau of Labor Statistics said.

Gold Rate Predictions

Payrolls numbers came in at below expectations, but a little higher than the market was printing. So, this gives a better probability that the Federal Reserve will cut (rates) later in the year, said Bart Melek, head of commodity strategies at TD Securities. Gold, a non-yielding asset, tends to perform well in a low-interest-rate environment.

Market participants are now anticipating two rate cuts by year-end, beginning in September.

Earlier this week, the U.S. central bank left interest rates unchanged in 4.25 per cent-4.50 per cent range, with Fed Chair Jerome Powell saying it's too soon to say whether the central bank will cut its interest rate target in September.

"We've got a situation where we have inflationary pressures continuing from tariffs and wages, yet job numbers are disappointing. So in that situation, if the Fed cuts (rates), that's going to have material impact on gold in a positive way," Melek added.

On the trade front, Trump's latest wave of tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, sent global markets tumbling as countries pushed for talks to clinch better deals. Safe-haven gold thrives during economic and geopolitical turmoil.

Spot silver was up 0.5 per cent to $36.94 per ounce, platinum added 1.1 per cent to $1,303.43 and palladium gained 1.2 per cent at $1,205.58.

FAQs

Q1. What are silver, platinum, palladium prices?
A1. Spot silver was up 0.5 per cent to $36.94 per ounce, platinum added 1.1 per cent to $1,303.43 and palladium gained 1.2 per cent at $1,205.58.

Q2. What do we know about Donald Trump tariffs?
A2. On the trade front, Donald Trump's latest wave of tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, sent global markets tumbling as countries pushed for talks to clinch better deals. Safe-haven gold thrives during economic and geopolitical turmoil.