Gold prices rose on Monday, and hovered near a record peak hit in the previous session, as remarks from Federal Reserve Chair Jerome Powell and U.S. economic data last week cemented hopes for a rate cut in June.
FUNDAMENTALS
* Spot gold edged 0.2% higher to $2,181.27 per ounce, as of 0134 GMT, not too far from a record peak of $2,194.99 hit on Friday.
* U.S. gold futures edged 0.1% higher to $2,188.20.
* Non-farm payrolls increased by 275,000 jobs last month, above economists’ expectations for 200,000 jobs gains, data showed last Friday. Data for January was revised down to show 229,000 jobs created instead of 353,000 as previously reported.
* The unemployment rate rose to 3.9% in February after holding at 3.7% for three straight months, the data showed. * Powell sounded more confident about cutting interest rates in coming months in his Congressional testimony last week. * Consumer price inflation data for February due on Tuesday will be the next major U.S. economic release to offer fresh clues on likely Fed policy.
* Traders are pricing in three to four quarter-point (25 bps) U.S. rate cuts, with a 75% chance for the first in June, as per LSEG’s interest rate probability app.
* Lower rates boost the appeal of non-yielding bullion.
* COMEX gold speculators raised their net long positions by 63,018 contracts to 131,060 in the week ended March 5, data showed on Friday.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.18% to 815.13 tonnes on Friday from 816.57 tonnes on Thursday.
* The dollar dipped 0.1% against a basket of currencies, making bullion less expensive for other currency holders.
* Spot platinum edged 0.1% higher to $913.59 per ounce, palladium climbed 0.6% to $1,025.55 and silver rose 0.2% to $24.35.