Mumbai, 9 Oct (Commoditiescontrol): Gold prices remained steady on Wednesday as traders awaited key signals on U.S. interest rate policy from the Federal Reserve's latest meeting minutes.
Spot gold held firm at $2,622.24 per ounce after a more than 1% decline in the previous session. Meanwhile, U.S. gold futures saw a modest 0.2% uptick, reaching $2,641.00.
The market is focused on the minutes from the Fed’s September policy meeting, expected at 1800 GMT, for clues on future rate movements. Additionally, traders are anticipating two important U.S. economic reports: the Consumer Price Index (CPI) on Thursday and the Producer Price Index (PPI) on Friday, which will provide further insights into inflationary trends.
According to CME FedWatch, traders have already priced in an 87% likelihood of a 25-basis-point rate cut in November. Gold, which yields no interest, is favored in a low-rate environment as it becomes more attractive relative to other investments.
Fed Bank of Boston President Susan Collins suggested that with inflation showing signs of weakening, further rate cuts by the U.S. central bank seem highly probable. Meanwhile, Atlanta Fed President Raphael Bostic noted that while the labor market has slowed, it is not experiencing a significant slowdown.
Gold exchange-traded funds (ETFs) have also seen strong demand, registering their fifth consecutive month of inflows in September, with North American-listed funds boosting their holdings, as reported by the World Gold Council.
In other metals, spot silver dipped 0.2% to $30.63 per ounce, platinum rose 0.6% to $955.90, and palladium edged down 0.3% to $1,018.78.
On the geopolitical front, tensions in the Middle East escalated as Israeli airstrikes killed two successors to Hezbollah’s slain leader. Israeli forces continued their ground offensive in southern Lebanon, deploying a fourth army division.
Meanwhile, in China, officials expressed confidence in meeting their full-year growth targets. However, investors were disappointed by the lack of stronger fiscal measures to stimulate the economy.
(By Commoditiescontrol Bureau: 09820130172)
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