Gold Steady as Market Awaits Inflation Data Ahead of Fed Meeting
Gold held steady, with attention focusing on US inflation data due later this week.
Bullion traded a little above $2,500 an ounce after climbing 0.4% in the previous session. Traders await US consumer price index and producer price index figures due Wednesday and Thursday, respectively, which could play into the Federal Reserve's thinking on a widely expected interest rate cut.
"Inflation matters," said Chris Low at FHN Financial. "Weaker numbers might encourage the Fed toward a 50 basis-point cut, while anything higher could lock in 25 basis points."
Lower rates are often seen as positive for non-interest bearing gold.
Gold has surged more than 20% this year, boosted by robust purchasing by central banks as well as expectations of Fed rate cuts. The precious metal has also been supported by haven demand amid ongoing conflicts in the Middle East and Ukraine.
Spot gold edged 0.2% lower at $2,501.39 an ounce by 9:20 a.m. in London. The Bloomberg Dollar Spot Index was also broadly steady, while the US 10-year Treasury yield rose. Palladium, platinum gained and silver held steady.
Source : Bloomberg
