Gold holds steady ahead of US inflation data
GOLD prices were steady on Monday (Jan 8) after mixed US economic data last week left traders looking for more clues on the pace and scale of the Federal Reserve’s interest rate cuts, with the focus now shifting to a key inflation print due later this week.
Spot gold was unchanged at US$2,044.49 per ounce, as at 0139 GMT, after falling for the week on Friday.
US gold futures rose 0.1 per cent to US$2,051.10 per ounce.
Trading was thin in Asia, with the Japanese market remaining closed for a holiday.
The US dollar index was also steady, after marking its best week since July 2023 on Friday, making bullion more expensive for other currency holders, while benchmark US 10-year Treasury yields, held above 4 per cent.
US employers hired more workers than expected in December, official data showed, but separate data from the Institute for Supply Management (ISM) indicated that the services sector slowed considerably last month.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Market participants are pricing in about a 64 per cent chance of a rate cut by the US central bank in March, according to the CME FedWatch tool.
Comex gold speculators raised their net long position by 2,009 contracts to 137,516 in the week to Jan 2, data showed on Friday.
On the physical front, gold buying in major consumer India rose last week, as domestic prices fell back from record highs.
Investors now await on Thursday’s US consumer price inflation report for further direction on the Fed’s rate cut timings.
Spot silver was little changed at US$23.17 per ounce, while platinum rose 0.3 per cent to US$963.24, and palladium gained 0.3 per cent to US$1,030.28 after a nine-session slide. REUTERS
Share with us your feedback on BT's products and services
