Gold prices ticked up on a softer dollar in early Asian hours on Thursday, while investors awaited further clarity on the U.S. Federal Reserve’s monetary policy path.
FUNDAMENTALS
* Spot gold rose 0.2% to $2,032.48 per ounce, as of 0030 GMT. U.S. gold futures were up 0.1% at $2,039.00.
* The dollar index slipped 0.1%, making greenback-priced bullion more affordable for overseas buyers.
* The annual increase in U.S. consumer prices slowed to below 5% in April for the first time in two years, potentially providing cover for the central bank to pause further interest rate hikes next month.
* Bullion prices initially rose on Wednesday after U.S. inflation data was released, before turning negative on profit taking.
* Markets are currently pricing in a 99% chance of the U.S. central bank holding rates at their current level in June. * Lower interest rates boost non-yielding bullion’s appeal
* U.S. President Joe Biden piled pressure on Republican lawmakers on Wednesday to move quickly to raise the country’s $31.4 trillion debt ceiling or risk throwing the world’s largest economy into a recession.
* The Bank of England is poised to raise borrowing costs for the 12th meeting in a row later in the day.
* Spot silver fell 0.1% at $25.39 per ounce, platinum edged 0.1% lower to $1,113.38, and palladium lost 0.3% at $1,602.55.