Gold prices tepid as traders seek more US data

GOLD prices traded flat in early Asian trade hours on Thursday (Mar 14), within close range of record-high levels on a broadly weaker US dollar, as traders awaited more economic data that could steer hopes for a mid-year rate cut by the US Federal Reserve.

Spot gold was flat at US$2,173.89 per ounce, as at 0147 GMT. US gold futures dipped 0.1 per cent to US$2,178.20.

The Fed is expected to hold rates steady at its policy meeting next week, but the focus will be on the ‘dot plot’ projections. The US central bank in its December meeting pencilled three-quarter-point rate cuts for 2024.

Investors will look at the US retail sales data, the producer prices index report and jobless claims due later in the day to gauge the US economy’s health and if it will deter the Fed from cutting rates in June.

Traders see a 67 per cent chance of a June rate cut, according to LSEG’s interest rate probability app, down from 72 per cent before data showed US consumer prices increased slightly above market expectations in February, suggesting some stickiness in inflation. Chances for a July rate cut stand at 83 per cent.

The US dollar index steadied after reversing all gains that were made on the back of a strong inflation data on Wednesday. Meanwhile, 10-year Treasury yields were steady at 4.1899 per cent after rising by 4.5 bps in the previous session.

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Gold subdued as sticky US inflation prompts rate-cut rethink

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SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21 per cent to 816.86 tonnes on Wednesday from 815.13 tonnes on Tuesday.

Spot platinum rose 0.4 per cent to US$942.05 per ounce, palladium gained 0.1 per cent to US$1,060.25 and silver was steady at US$25.05, after hitting a more than four-month high earlier in the session. REUTERS