Gold Steady as Traders Weigh Interest Rate Direction, Mideast Concerns Ease
Gold eased slightly as traders digested comments from a senior U.S. policymaker that suggested slower monetary easing was likely, while demand for safe-haven assets eased amid fading concerns about an escalating Middle East conflict.
Bullion was little changed near $2,650 an ounce — just below an all-time high hit last month — after fluctuating between small gains and losses in the previous session. Federal Reserve Chairman Christopher Waller on Monday said recent economic data suggests policy makers may approach the next interest rate cut with less urgency than they did at their meeting last month. Lower interest rates are generally seen as a boon to the non-yielding precious metal.
With little U.S. economic data due this week, investors are focused on geopolitics after the Washington Post reported that Israel has no plans to attack Iran’s oil or nuclear facilities — a development that could take some of the support away from gold as safe-haven demand eases. The precious metal remains up more than 25% this year, with optimism about interest-rate cuts driving the latest rally — though traders in recent weeks have trimmed expectations for the pace of easing this year following mixed reports on the U.S. economy. Robust central bank buying and rising geopolitical tensions have also supported bullion.
Spot gold was little changed at $2,649.52 an ounce at 8:09 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, after rising 0.3% in the previous session. Silver and platinum were steady, while palladium eased.
Source: Bloomberg
