Gold holds steady ahead of US data for more Fed clues
Shafaq News / Gold prices steadied on Thursday, as investors digested comments from Federal Reserve Governor Christopher Waller on interest rate cuts and looked forward to more U.S. economic data for policy clues.
Spot gold was up 0.1% at $2,195.59 per ounce, as of 0503 GMT. U.S. gold futures edged 0.2% higher to $2,195.10.
"The Fed signalled they want to be cutting rates and there's a geopolitical risk concern that continues to linger in the markets around these wars, both in Ukraine and in the Middle East, which is gold supportive," said Ilya Spivak, head of global macro at Tastylive.
"Gold prices are rangebound for most of the time this month and a break above current resistance level around $2,225 per ounce could see prices heading towards the $2,300 mark."
Gold hit a record high last week after the Fed anticipated three rate cuts in 2024 despite recent high inflation readings.
Fed Governor Waller on Wednesday said recent disappointing inflation data affirms the case for the U.S. central bank holding off on cutting its short-term interest rate target.
Investors now look forward to the U.S. core personal consumption expenditure (PCE) price index report due on Friday to gauge when the Fed may begin cutting interest rates.
The PCE price index was seen rising 0.3% in February, which would keep the annual pace at 2.8%. Investors' focus will also be on weekly U.S. initial jobless claims report due later in the day.
Traders are currently pricing in a 62% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding bullion.
Spot silver was steady at $24.68 per ounce, platinum rose 0.7% to $899.75 and palladium climbed 1.4% to $997.41.
(Reuters)
