Gold prices firm ahead of US inflation print

Gold prices edged higher on Wednesday, as U.S. bond yields fell, while investor focus was on a key U.S. inflation print and remarks from several Federal Reserve officials this week for fresh clues on the central bank’s interest rate trajectory.

FUNDAMENTALS

* Spot gold edged 0.1% higher at $2,031.99 per ounce(Oz), as of 0135 GMT. U.S. gold futures fell 0.2% to $2,041.00/Oz.
* Benchmark 10-year U.S. Treasury yields slipped to 4.2934% from 4.3150% on Tuesday, making non-yielding bullion more appealing, while the dollar held steady.

* Fed Governor Michelle Bowman on Tuesday reinforced the U.S. central bank’s patient stance on easing. She signalled that she is in no rush to cut rates, particularly given upside risks to inflation.

* At least 9 more Fed officials are due to speak this week.

* Traders are betting on about 78 basis points (bps) of rate cuts for 2024, with a 61% chance of the first quarter-point (25 bps) cut coming in June, according to LSEG’s interest rate probability app IRPR. Lower interest rates boost the appeal of holding non-yielding bullion. * Data on Tuesday showed U.S. durable goods orders posted the largest drop in nearly four years in January. U.S. consumer confidence also slid in February. * Markets now await the U.S. Federal Reserve’s preferred gauge of inflation – the core personal consumption expenditures (PCE) price index – on Thursday.

* Top bullion consumer China’s monthly net gold imports via Hong Kong surged 51% in January to their highest since mid-2018, official data showed on Tuesday.

* Spot platinum rose 0.2% to $890.25/Oz, while palladium edged 0.1% higher to $937.02/Oz, and silver climbed 0.1% to $22.46/Oz.

(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.