GOLD prices held steady on Tuesday (Oct 29) as investors looked forward to a slew of US economic data for clues about the Federal Reserve’s interest rate outlook.
Spot gold edged up 0.1 per cent to US$2,744.51 per ounce by 0014 GMT. Prices hit a record high of US$2,758.37 on Wednesday.
US gold futures were steady at US$2,756.70.
September US job openings and October consumer confidence data, due later in the day, will likely offer more clues about the health of the world’s largest economy.
The Fed will announce its interest rate decision at its two-day meeting starting on Nov 6. The employment and inflation data, along with the outcome of a closely contested presidential election, will likely influence the Fed decision.
Markets are pricing in about 98 per cent chance of a 25-basis-point rate cut, according to CME’s FedWatch Tool.
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Lower rates reduce the opportunity cost of holding gold, which is also seen as a safe asset during times of economic and political turmoil.
Elsewhere, at least 60 people were killed and dozens wounded in Israeli strikes on Lebanon’s eastern Bekaa Valley, two security sources and the mayor of Baalbek said.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.19 per cent to 891.5 tonnes on Monday.
On the physical front, Chinese gold consumption dropped 11.2 per cent year on year in the first three quarters of 2024 as high prices dented demand for jewellery, the state-backed gold association said.
Spot silver was little changed at US$33.70 per ounce, while palladium rose 0.1 per cent to US$1,034.36, and platinum fell 0.3 per cent to US$1,215.24. REUTERS
