Gold prices dip as firmer dollar dampens appeal

Gold prices inched down on Monday, pressured by a firmer dollar, while investors awaited further clues on the U.S. Federal Reserve‘s timing of this year’s first interest rate cut.

FUNDAMENTALS

* Spot gold was down 0.3% at $2,030.9 per ounce, as of 0100 GMT. U.S. gold futures edged 0.4% lower to $2,040.6 per ounce.
* The dollar index was up 0.1%, making greenback-priced bullion less affordable for overseas buyers.

* Last week, Fed Governor Christopher Waller said he was in “no rush” to cut rates, firming investor bets against U.S. interest rate cuts before June.

* While another Fed official sees the U.S. central bank on track to cut interest rates “later this year,” despite stronger-than-expected inflation and labour market data in January.

* Most policymakers at the Fed’s last meeting were concerned about the risks of cutting interest rates too soon, minutes showed. * Markets are currently pricing in a 68% chance of a cut in June, according to the CME Fed Watch Tool. Lower interest rates boost the appeal of holding non-yielding bullion. * Meanwhile, a surge of interest in bitcoin exchange-traded funds (ETFs) is prompting investors to swap out holdings in gold-backed ETFs.

* Spot platinum was down 0.4% at $896.95 per ounce, palladium fell 0.3% at $968.23, while silver lost 0.4% at $22.86 per ounce.

(You can now subscribe to our ETMarkets WhatsApp channel)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.