Gold prices flat as traders await fresh catalysts

GOLD was flat on Tuesday (Oct 15) as investors await fresh insights into the Federal Reserve’s stance on US interest rate reductions for further direction on prices.

Spot gold held its ground at US$2,648.89 per ounce by 0022 GMT. US gold futures steadied at US$2,665.50.

Fed governor Christopher Waller on Monday called for “more caution” on interest rate cuts ahead. He added that the economy is in a good place.

Fed Bank of Minneapolis president Neel Kashkari said more rate reductions likely lie ahead for the central bank as the 2 per cent inflation target looms into sight.

Bets on a 25-basis-point reduction at the Fed’s November meeting stood at 86.5 per cent, according to the CME Group’s FedWatch tool. Lower interest rates raise the appeal of holding zero-yield bullion.

Investors will keep a tab on US retail sales, industrial production data and weekly jobless claims due later in the week.

Central banks remain keen buyers of gold to diversify their reserves for financial or strategic reasons, representatives of three central banks told the London Bullion Market Association’s annual conference in Miami.

On the geopolitical front, Israel expanded its targets in its war with Hezbollah militants in Lebanon, killing at least 21 people in an airstrike in the north, health officials said.

Spot silver was flat at US$31.19 per ounce. Platinum held steady at US$992.97 and palladium slipped 0.3 per cent to US$1,026.43.

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Top metals consumer China’s export growth slowed sharply in September while imports also unexpectedly decelerated, undershooting forecasts by big margins. REUTERS