Advertisements
Home Gold News Gold steadies as traders await inflation data, Fed decision

Gold steadies as traders await inflation data, Fed decision

by daisy

Gold prices edged higher on Tuesday after the dollar pulled back, although the moves were muted as traders awaited the U.S. inflation data and the Federal Reserve’s decision on interest rates.

* Spot gold was up 0.1% at $1,959.23 per ounce by 0032 GMT. U.S. gold futures rose 0.2% to $1,973.40.

Advertisements

* The U.S. dollar eased 0.1%, making greenback-priced bullion more appealing to overseas buyers.

Advertisements

* The consumer price index for May is expected on Tuesday to show a slowing rise in inflation on a year-over-year basis to 4.1% from the April reading of 4.9%, according to economists polled by Reuters, with a monthly increase of 0.2%, down from a 0.4% rise the prior month.

Advertisements

* Markets see a 79.2% chance of the Fed keeping rates unchanged, according to CME’s Fedwatch tool.

Advertisements

* Higher interest rates raise the opportunity cost of holding non-yielding gold.

* The European Central Bank and the Bank of Japan will deliver their rate decisions on Thursday and Friday, respectively.* However, many bond investors are keeping a defensive stance in managing their portfolios ahead of this week’s Federal Reserve policy meeting, as they brace for the end of the monetary policy tightening cycle this year and possible interest rate cuts sometime in 2024.

 

Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com