Gold hovers near two-week high

Gold prices were little changed on Thursday near a two-week high after softer-than-expected US economic data spurred hopes of interest rate cuts as early as September and focus shifted to non-farm payrolls data, reports Reuters.
Spot gold was almost unchanged at $2,357.37 per ounce as of 1256 GMT after prices hit their highest level since June 21 on Wednesday. US gold futures were down 0.2 per cent at $2,365.80. Bullion prices in the previous session gained more than 1 per cent after a weak services report and ADP employment report on Wednesday depicted a slowing US economy.
"It appears that there's a strong chance that the rate cuts might occur some time in the end of third quarter or early part of the fourth quarter, which just makes gold a lot more attractive than the alternative bonds," said Alex Ebkarian, chief operating officer at Allegiance Gold.
Lower rates reduce the opportunity cost of holding non-yielding gold.
Minutes of the Fed's June meeting acknowledged the US economy appeared to be slowing and "price pressures were diminishing". "Long-term wise, we're seeing the sanctions that the US placed inducing a lot of central banks and other governments to move towards gold specifically to eliminate the counterparty and default risk," Ebkarian added.