GOLD prices firmed near month-high levels on Friday (Mar 1) and were set for a second weekly rise after data showed that United States inflation was gradually easing, while traders turned their focus to remarks from a slew of Federal Reserve officials.
Spot gold was steady at US$2,043.98 per ounce, as at 0150 GMT, after hitting US$2050.59 on Thursday – its highest level since Feb 2. US gold futures edged 0.1 per cent lower to US$2,052.40.
Data on Thursday showed the US personal consumption expenditures (PCE) price index rose by 0.3 per cent in January, while the core PCE price index gained 0.4 per cent. In the 12 months to January, inflation rose 2.4 per cent – the smallest in nearly three years.
US central bankers are looking through recent data showing price pressures rebounded last month, and are focusing instead on overall progress on inflation that they say will likely set the table for interest-rate cuts later this year.
At least six more Fed officials are due to speak on Friday.
Traders are betting on about three quarter-point (25 bps) interest rate cuts for 2024 in the US, with a 65 per cent chance of the first one coming in June, according to LSEG’s interest rate probability app IRPR.
Lower interest rates boost the appeal of non-yielding bullion.
The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust’s holdings fell 3.3 per cent in February and 6.4 per cent so far this year.
Platinum group metals producer Impala Platinum could shut some of its loss-making South African mining operations if metal prices deteriorate further and restructuring efforts fail to improve margins, CEO Nico Muller said.
Spot platinum climbed 0.5 per cent to US$880.45 per ounce, and palladium rose 0.2 per cent to US$943.37, while silver fell 0.1 per cent to US$22.64. REUTERS
