Unlock the Market Insights: Gold Prices Rise as Biden Withdraws from 2024 Race

Gold prices rose on Monday following President Joe Biden 's decision to withdraw from the 2024 presidential race . The market is now focused on U.S. personal consumption expenditures data for more insights into potential interest rate cuts . Spot gold increased to , 404.95 per ounce , while U.S. gold futures also saw a gain.

Biden 's announcement led to a weakening dollar , making gold more appealing to investors using other currencies . In the upcoming days , investors are eagerly awaiting U.S. gross domestic product data for the second quarter and personal consumption expenditure data . Expectations for a 25 bps Fed rate cut by September are already factored into money markets.

UBS analyst Giovanni Staunovo predicts two rate cuts by the Fed , with a possibility of a cut in July depending on economic data . The target price for gold is set at , 600 / oz by the end of the year . Recent weeks have seen a rise in speculative holdings in gold futures / options . However , there is still room for growth in ETF holdings , pending clarity on a potential rate cut by the Fed.

Last week , gold prices hit a record high of , 483.60 due to increased expectations of U.S. interest rate cuts . Lower interest rates reduce the cost of holding non - yielding assets like gold . The future of gold prices will depend on the Fed 's decisions and economic indicators in the coming weeks.

In London , a one kilogram gold bar was displayed alongside silver bars at Gold Investments . The market 's reaction to Biden 's decision and upcoming economic data will continue to drive gold prices in the near future . With uncertainties regarding interest rates and economic growth , investors are closely monitoring the situation for potential opportunities in the gold market.

Overall , the outlook for gold remains positive , with the potential for further price increases . The market 's response to political and economic developments , along with the Fed 's actions , will be crucial in determining the future trajectory of gold prices . As uncertainties persist , investors are advised to stay informed and vigilant in their investment decisions.