Gold holds steady ahead of US inflation print
GOLD prices held steady on Wednesday (Jan 10), as investors refused to make big bets ahead of a key United States inflation print that could offer more clarity on when the Federal Reserve might begin cutting interest rates.
Spot gold rose 0.1 per cent to US$2,031.30 per ounce, as at 0151 GMT, trading in a range of about US$4.
US gold futures rose 0.2 per cent to US$2,036.90 per ounce.
Bullion prices stood ground even as the US dollar index ticked up and yields on 10-year US Treasury notes remained above 4 per cent.
Traders are on the lookout for Thursday’s US consumer price inflation report which is expected to show headline inflation rose 0.2 per cent in the month and by 3.2 per cent on an annual basis.
An official US report revealed that consumers expect a decline in inflation while Fed governor Michelle Bowman stated that the US central bank’s monetary policy seems “sufficiently restrictive”.
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Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Market participants are pricing in an about 62 per cent chance of a rate cut by the US central bank in March, according to the CME FedWatch tool.
Australia’s inflation slowed to a near two-year low in November and core inflation also eased sharply, a softer-than-expected result that reinforced market expectations that interest rates would not need to rise any further.
Australian shares fell, dragged down by mining and gold stocks, while Japan’s benchmark Nikkei average opened up 0.4 per cent higher.
Spot silver was steady at US$22.96 per ounce, while platinum rose 0.2 per cent to US$931.75, and palladium gained 0.5 per cent to US$983.39. REUTERS
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