Gold hovers near two-week high as weak data fuels US rate cut bets
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Gold prices eased on Thursday but hovered near a two-week high hit in the previous session, after softer-than-expected US economic data fuelled hopes that the Federal Reserve could cut interest rates as soon as September. Spot gold fell 0.1% at US$2,353.14 per ounce as of 0637 GMT, after hitting highest level since June 21 in the previous session. US gold futures lost 0.3% at US$2,363.10. US economic data on Wednesday, including weak services and ADP employment reports, showed a slowing economy. A separate report showed an increase in initial applications for US unemployment benefits last week. Traders are now looking out for US nonfarm payrolls (NFP) data, due on Friday. Markets are now pricing in a 73% chance of the Fed cutting interest rates at its September meeting, according to the CME FedWatch Tool. Lower rates reduce the opportunity cost of holding non-yielding gold.

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