Gold Rises to Nine-Week High as US Data Reinforces Rate Cut Bets

  • Manufacturing gauge drops as industry struggles for momentum
  • Bullion is on track for second consecutive weekly gain

Spot bullion traded above $2,046 an ounce, on track for a modest weekly gain and the highest finish since Feb. 1. 

Photographer: Chalinee Thirasupa/Bloomberg
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Gold rose to the highest in nine weeks as disappointing US factory data and a drop in consumer sentiment reinforced bets on the possibility of interest-rate cuts later this year.

Signs of a softening economy solidified expectations that the Federal Reserve will need to lower borrowing costs to help shore up the economy. Higher rates are typically negative for non-yielding bullion.