Gold ticks up as investors weigh Fed slowdown chances

GOLD prices inched higher in early Asian trade on Thursday (Jan 19) as investors weighed chances of the US Federal Reserve slowing its pace of interest rate hikes.

Spot gold was up 0.2 per cent at US$1,907.18 per ounce, as of 0028 GMT. US gold futures rose 0.1 per cent to US$1,909.40.

Few Fed officials signalled on Wednesday that they would push on with more interest rate hikes. However, Philadelphia Fed president Patrick Harker and Dallas Fed president Lorie Logan said they supported a slower rate-hike pace.

Traders are mostly pricing in a 25-basis point rate hike in February. The US central bank increased rates by 75 bps four times last year, before slowing to a 50-bp increase in December.

Lower interest rates tend to be beneficial for bullion, decreasing the opportunity cost of holding the non-yielding asset.

Data on Wednesday showed US producer prices fell more than expected in December, offering more evidence that inflation was receding.

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Gold stalls as firmer dollar counter slower rate-hike hopes

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US retail sales fell by the most in a year in December, putting consumer spending and the overall economy on a weaker growth path heading into 2023.

Spot silver gained 0.1 per cent to US$23.44 per ounce, platinum was flat at US$1,038.31, and palladium unchanged at US$1,718.61. REUTERS