Gold holds near record high as markets eye US economic data
Gold prices steadied on Wednesday, hovering just below a record high hit in the previous session, as investors hunkered down for economic data due later in the week for further cues on the Federal Reserve's policy path.
Spot gold was steady at $3,765.02 per ounce, as of 09:40 a.m. ET (1340 GMT), after hitting a record high of $3,790.82 on Tuesday.
U.S. gold futures for December delivery edged down 0.5% to $3,798.20.
"Gold is still digesting some of the commentary coming out of the Federal Reserve yesterday and also geopolitical tensions with Russia. It's finding some support here, but slightly cautious ahead of some economic data coming out," said Phillip Streible, chief market strategist at Blue Line Futures.
Federal Reserve Chair Jerome Powell on Tuesday offered no new clues on the future course of interest rates, stressing that the central bank must carefully balance the risks of stubborn inflation against a slowing job market.
Markets are pricing in two additional 25-basis-point rate cuts this year — one in October with a 94% probability and another in December with a 79% probability, according to the CME FedWatch tool.
Investors are now focused on Thursday's weekly U.S. jobs data and Friday's release of the U.S. Personal Consumption Expenditures index, the Federal Reserve's preferred inflation gauge, for fresh signals on the path of potential rate cuts.
On the geopolitical front, Ukraine's military said on Wednesday it struck two oil pumping stations overnight in Russia's Volgograd region.
Safe-haven gold becomes more attractive during periods of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment as it is a non-yielding asset.
Spot silver rose 0.3% to $44.15 per ounce, hovering near a 14-year high. Platinum rose 0.1% to $1,479.34 and palladium rose 0.8% to $1,228.85.
Source: Reuters
