Gold holds steady as investors seek U.S. data for Fed clues
Shafaq News/ Gold prices hovered near flat on Monday as investors awaited key U.S. economic data this week that could influence the Federal Reserve's monetary policy stance.
Recent data suggesting stabilizing inflation has boosted hopes for a Fed rate cut later in 2024. Spot gold was little changed at $2,322.53 per ounce by 0342 GMT, after rising nearly 2% in May. U.S. gold futures edged down 0.1% to $2,342.70.
Market participants are eyeing data points like Wednesday's ADP employment report and Friday's non-farm payrolls data to assess the U.S. economy's health and its potential impact on the Fed's September policy meeting.
Currently, markets price in a roughly 54% chance of a September rate cut, up from around 49% before the inflation report.
However, rising interest rates generally increase the opportunity cost of holding non-yielding assets like gold.
Technically, spot gold could fall towards $2,302 if it breaks support at $2,319, according to Reuters analyst Wang Tao.
Silver dipped 0.8% to $30.12 per ounce, while platinum gained 0.3% to $1,040.80. Palladium edged down 0.5% to $908.19.
