Gold’s record run stalls ahead of US inflation print

GOLD prices were steady on Tuesday (Mar 12), as traders refrained from taking new positions after bullion’s record run ahead of United States consumer prices data that could offer clues on the Federal Reserve’s monetary policy trajectory.

Spot gold was flat at US$2,182.48 per ounce, as at 0157 GMT, after rising for nine consecutive sessions. Bullion hit a record peak of US$2,194.99 on Friday.

US gold futures were also flat at US$2,188.70.

The US dollar held broadly steady on Tuesday, while the yen firmed near a one-month high on mounting expectations that the Bank of Japan could exit negative interest rates as early as next week.

The US consumer price index report for February, due at 1230 GMT, is forecast to rise 0.4 per cent for the month and keep the annual pace steady at 3.1 per cent. Core inflation is seen rising 0.3 per cent, which will nudge the annual pace down to the lowest since early 2021 at 3.7 per cent.

Other US economic data this week includes retail sales, producer price index, and weekly initial jobless claims print on Thursday.

Data last week showed signs of a cooling US jobs market, while Fed chair Powell said they are not far from gaining the confidence they need in falling inflation to cut interest rates.

Traders are pricing in three to four quarter-point (25 bps) US rate cuts, with a 70 per cent chance for the first in June, as per LSEG’s interest rate probability app.

Lower rates boost the appeal of non-yielding bullion.

SEE ALSO

Chinese buying set stage for gold’s latest record run

Gold marches higher as US jobs data boosts bets of early rate cut

Spot platinum rose 0.5 per cent to US$937.60 per ounce, palladium climbed 0.3 per cent to US$1,033.35 and silver advanced 0.3 per cent to US$24.49. REUTERS