Mumbai, 10 Oct (Commoditiescontrol): Gold prices remained stable on Thursday as investors awaited a crucial U.S. inflation report to gain more clarity on the Federal Reserve's future monetary policy.
Spot gold was almost flat at $2,609.72 per ounce after six consecutive sessions of declines. U.S. gold futures also held steady at $2,626.70 per ounce. Gold had reached a record high last month.
Market focus is now on the U.S. Consumer Price Index (CPI) for September, due at 1230 GMT, followed by the Producer Price Index (PPI) data on Friday. The inflation readings are expected to influence the Federal Reserve's next move on interest rates. Currently, market predictions suggest an 80% chance of a 25-basis-point rate cut in November, with a 20% probability of no change, according to CME’s FedWatch tool.
Lower interest rates generally benefit gold by reducing the opportunity cost of holding the non-yielding asset. According to minutes from the Fed’s September meeting, a "substantial majority" of officials supported starting a new phase of easier monetary policy with a half-point rate cut. However, future rate cuts will depend on upcoming economic data.
San Francisco Fed Bank President Mary Daly hinted at one or two more rate cuts by year-end, assuming the economy follows her expectations. In contrast, Dallas Fed Bank President Lorie Logan advocated for smaller rate reductions, citing inflation risks and uncertainties surrounding the economic outlook.
On the physical market side, record-high gold prices have dampened the Indian bullion industry’s hopes for a profitable festival season, despite a recent deep cut in import duties to the lowest in a decade.
Elsewhere, spot silver edged up 0.1% to $30.54 per ounce, platinum gained 1.1% to $955.20, while palladium dipped slightly by 0.1% to $1,038.75 per ounce.
(By Commoditiescontrol Bureau: 09820130172)
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