Gold edges higher on safe-haven demand, weaker dollar

Gold prices edged up on Thursday supported by safe-haven demand amid rising geopolitical tensions in the Middle East and a softer dollar, while minutes of the latest U.S. Federal Reserve meeting dampened hopes for an early interest rate cut.

FUNDAMENTALS

* Spot gold was up 0.1% at $2,026.9 per ounce, as of 0100 GMT. U.S. gold futures edged 0.1% up at $2,035.8 per ounce.

* Israel intensified its bombardment of Rafah in Gaza’s south, as the ruined Palestinian enclave’s health ministry announced 29,313 deaths in the war so far.

* The dollar index was down 0.1%, making greenback-priced bullion more affordable to overseas buyers.

* January inflation data, with consumer prices rising faster than anticipated, complicate upcoming Fed rate decisions, Richmond Fed president Thomas Barkin said. * The bulk of policymakers at the Fed’s last meeting were concerned about the risks of cutting interest rates too soon, according to minutes of the Jan. 30-31 session. * Markets are currently pricing in a 70% chance of a cut in June, according to the CME Fed Watch Tool. Lower interest rates boost the appeal of holding non-yielding bullion.

* Copper and gold are expected to see the largest immediate price boost in the commodities sector from potential U.S. Federal Reserve interest rate cuts, analysts at Goldman Sachs said.

* Spot platinum was up 0.2% at $885.08 per ounce, palladium rose 0.5% at $954.68, while silver was up 0.2% at $22.90 per ounce.

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