Gold holds tight range as focus turns to US inflation data
Shafaq News / Gold prices were stuck in a tight range on Tuesday as investor focus turns to U.S. inflation data due later this week, which could shed more light on the timing of the Federal Reserve's first interest rate cut this year.
Spot gold was flat at $2,170.59 per ounce, as of 0310 GMT. U.S. gold futures edged 0.2% lower to $2,171.20 per ounce.
"We are lacking fresh catalysts, but for now the market seems to be consolidating - taking the proverbial breath after a fairly aggressive run," Kyle Rodda, a financial market analyst at Capital.com said.
"The next move probably hinges on this week's PCE Index release. Evidence of further disinflation in the U.S., which would ease fears of prices accelerating or at least re-anchoring at a higher level, would be very bullish for gold."
Gold prices hit a record high last week after Fed policymakers indicated they still expected to reduce interest by three-quarters of a percentage point by 2024 end despite recent high inflation readings.
Chicago Fed Bank President Austan Goolsbee said on Monday that at the Fed's policy meeting last week he penciled in three rate cuts for this year.
Meanwhile, Fed Governor Lisa Cook cautioned the U.S. central bank needs to proceed carefully as it decides when to begin cutting interest rates.
Investors now look forward to U.S. core personal consumption expenditure price index data due on Friday. PCE price index is seen rising 0.3% in February, which would keep the annual pace at 2.8%.
Traders are pricing in a 70% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.
The dollar index , meanwhile, slipped 0.3% against its rivals, making gold less expensive for other currency holders.
Spot silver eased 0.2% to $24.63 per ounce, platinum fell 0.1% to $901.30 and palladium edged 0.1% lower to $1,003.75.
(Reuters)
