PRECIOUS-Gold struggles for direction ahead of U.S. data, ECB meet
U.S. benchmark 10-year Treasury yields were hovering near more than a month’s low, while the dollar index held firm.
Spot gold was up 0.1% at $1,893.80 per ounce, as of 0524 GMT, while U.S. gold futures rose 0.1% to $1,896.60.
“What I am looking at is the build-up to the FOMC meeting ... the Fed may start to discuss about taper and this is getting highlighted,” Stephen Innes, managing partner at SPI Asset Management, said.
“The market is still of the opinion that it (the Fed) is going to a dovish taper and we have inflation aspects, which should be relatively positive for gold.”
On Thursday, traders will keep a close watch on the ECB’s policy meeting as well as the U.S. consumer price index report to gauge the Federal Reserve’s steer on monetary policy.
The U.S. central bank is expected to hold its policy meeting next week.
U.S. Treasury Secretary Janet Yellen on Sunday noted that a slightly higher interest-rate environment “would be a plus for society’s point of view and the Fed’s point of view.”
Data out of China showed May factory gate prices rose at their fastest pace in over 12 years, while consumer prices increased for the third straight month.
“We expect further gains (to gold) in the coming months amidst rising inflation pressuring U.S. treasury real yields, a weak U.S. dollar and renewed waves of COVID-19 infections,” Fitch Solutions said in a note.
Silver was steady at $27.64 per ounce, palladium eased 0.1% to $2,803.13, while platinum fell 0.1% to $1,160.08.
Source: Reuters
