July 18 – Gold prices struggled for momentum in early Asian trading on Tuesday, as traders awaited a U.S. Federal Reserve meeting due next week for clues about its monetary tightening path.
Spot gold was little changed at $1,955.24 per ounce by 0110 GMT. U.S. gold futures gained 0.1% to $1,958.80.
The dollar was steady at 99.88, hovering close to its April 2022 lows of 99.58.
Interest rate futures showed markets were pricing in another rate hike at the Fed’s July 25-26 meeting, with rate cuts seen well into 2024. * Fed Chair Jerome Powell had earlier highlighted the majority view that two additional rate increases would be needed.
Fed Governor Christopher Waller made the case for tighter policy in the central bank leadership’s final remarks before the blackout on public comments ahead of the July meeting.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Speaking to Bloomberg TV on Monday, Treasury Secretary Janet Yellen said she did not expect the U.S. economy to enter into a recession.
Goldman Sachs’ chief economist, Jan Hatzius, said the bank was cutting its probability that a U.S. recession will start in the next 12 months to 20% from an earlier 25% forecast.
China’s economy grew at a frail pace in the second quarter, raising pressure on policymakers to deliver more stimulus to shore up activity.
Spot silver fell 0.1% to $24.83 per ounce, platinum was little changed at $976.07 while palladium rose 0.1% to $1,284.91. DATA/EVENTS (GMT) 1230 US Retails Sales MM June 1315 US Industrial Production MM June
