Mumbai, 2 Jul (Commoditiescontrol): Gold prices remained stable on Tuesday as investors awaited crucial comments from Federal Reserve Chair Jerome Powell and upcoming jobs data for further indications regarding the U.S. interest rate outlook.
Spot gold held steady at $2,332.27 per ounce, while U.S. gold futures saw a slight increase of 0.2%, reaching $2,342.70 per ounce.
Market participants are keenly anticipating Powell's remarks later today, seeking clues about potential interest rate cuts. Additionally, they are focused on the minutes from the Federal Reserve's latest policy meeting, which will be released on Wednesday, and the nonfarm payrolls report, scheduled for Friday.
John Williams, President of the Federal Reserve Bank of New York, emphasized on Sunday his belief that inflation is gradually returning to the levels targeted by the central bank. Although gold is traditionally viewed as a hedge against inflation, rising interest rates increase the opportunity cost of holding this non-yielding asset.
Recent data showed that U.S. manufacturing contracted for the third consecutive month in June. Additionally, a decline in the prices paid by factories for inputs to a six-month low indicated that inflation might continue to ease.
In other developments, European Central Bank President Christine Lagarde stated that the ECB is not in a rush to further cut rates.
The SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, reported a decrease in its holdings by 0.17%, dropping to 827.61 tonnes on Monday from 829.05 tonnes on Friday.
In the broader precious metals market, spot silver fell by 0.1% to $29.41 per ounce, platinum remained unchanged at $978.20, and palladium edged up by 0.8% to $978.80 per ounce.
(By Commoditiescontrol Bureau: 09820130172)
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