Gold holds ground as traders brace for US inflation data
GOLD prices held steady on Thursday (Jul 11), with investors awaiting US inflation data due later in the day for more insights on the Federal Reserve’s interest rate path.
Spot gold was nearly unchanged at US$2,372.99 per ounce, as at 0042 GMT. US gold futures were flat at US$2,378.40.
Fed chair Jerome Powell said on Wednesday that the US central bank would make interest rate decisions “when and as” they were needed. On Tuesday, he told House members that “more good data” would build the case for a rate cut.
Non-yielding gold’s appeal tends to shine in a low-interest-rate environment.
Markets currently see around 73 per cent odds for a rate cut by September, with a second reduction also seen as likely by December, according to the CME Group’s FedWatch Tool.
Traders are waiting for the June Consumer Price Index report due at 1230 GMT and the Producer Price Index report due on Friday.
US inflation should continue to fall without a significant further rise in the unemployment rate, Fed governor Lisa Cook said on Wednesday.
Spot silver rose 0.2 per cent to US$30.87 per ounce, platinum ticked up 0.5 per cent to US$994.10 and palladium gained 0.4 per cent to US$989.93.
China’s consumer prices grew for a fifth month in June but missed expectations, with domestic demand mired on a slow recovery track despite support measures for the world’s second-largest economy. REUTERS
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