Mumbai, 25 June 2024 (Commoditiescontrol): Gold prices edged down on Tuesday as investors awaited key U.S. inflation data expected later this week, which could provide fresh insights into the Federal Reserve's timeline for potential interest rate cuts. As of 0114 GMT, spot gold was down 0.1% at $2,329.64 per ounce, while U.S. gold futures also dipped 0.1% to $2,342.00 per ounce.
San Francisco Federal Reserve Bank President Mary Daly indicated on Monday that she does not believe the central bank should cut rates until policymakers are confident that inflation is moving toward the 2% target. Traders are closely watching the U.S. core personal consumption expenditures (PCE) price index report, the Fed's preferred measure of inflation, which is due on Friday. This report is expected to provide more cues on the timing and scale of rate cuts. Additionally, investors are anticipating comments from Federal Reserve officials, including Fed Governors Lisa Cook and Michelle Bowman, who are scheduled to speak this week.
According to the CME FedWatch Tool, traders are currently pricing in about a 68% chance of a Fed rate cut in September. Lower interest rates generally reduce the opportunity cost of holding non-yielding bullion, which can influence gold prices.
In other precious metals, spot silver fell 0.3% to $29.53 per ounce, platinum rose 0.7% to $1,001.25 per ounce, and palladium gained nearly 1% to $987.91 per ounce. In China, the world's top consumer of gold, retailers are facing a challenging near-term outlook following a disappointing mid-year online shopping festival. This has also cast a shadow over the recovery prospects of the world's second-largest economy.
(By Commoditiescontrol Bureau; +91-9820130172)
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