GOLD prices edged down on Tuesday (Jun 25), as investors await key US inflation data due this week that could offer fresh clues on how soon the Federal Reserve can cut interest rates.
Spot gold was down 0.1 per cent at US$2,329.64 per ounce, as at 0114 GMT. US gold futures also edged 0.1 per cent lower to US$2,342.
San Francisco Federal Reserve Bank president Mary Daly said on Monday she does not believe the US central bank should cut rates before policymakers are confident that inflation is headed towards 2 per cent.
Traders are looking out for the US core personal consumption expenditures price index report – the Fed’s preferred measure of inflation – due on Friday to get more cues on the timing and scale of rate cuts.
Investors also look forward to comments from Fed officials set to speak this week, including Fed governors Lisa Cook and Michelle Bowman.
Traders are currently pricing in about a 68 per cent chance of a Fed rate cut in September, according to CME FedWatch Tool.
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Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
In top consumer China, retailers are facing a daunting near-term future after a disappointing mid-year online shopping festival that has also clouded the recovery prospects of the world’s second-largest economy.
Spot palladium prices in London hit a one-month high and briefly broke above the key level of US$1,000 per troy ounce in volatile trade last week as some investors covered their short positions and the market was tight for nearby physical supply.
Spot silver fell 0.3 per cent to US$29.53 per ounce, platinum rose 0.7 per cent to US$1,001.25 and palladium gained nearly 1 per cent to US$987.91. REUTERS
