GOLD prices inched up on Tuesday (May 21), hovering near a record peak hit in the previous session as recent economic data boosted bets that the US Federal Reserve would start cutting interest rates later this year.
Spot gold was up 0.1 per cent at US$2,428.14 per ounce, as at 0110 GMT. Bullion hit a record high of 2,449.89 on Monday.
US gold futures fell 0.3 per cent at US$2,431.80.
Data showed that US consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend, boosting expectations for a September rate cut.
However, Fed officials are not ready to say inflation is heading to the US central bank’s 2 per cent target despite last week’s cooling data, with several calling for continued policy caution.
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
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Anglo American shareholder Legal & General Investment Management supports the break-up plan announced by the company last week as the deadline approaches for BHP Group to log a formal takeover offer.
Shares of Chinese developers wobbled as investors fretted that China’s “historic” steps to stabilise its crisis-hit property sector fell short of what is required to foster a sustainable turnaround in demand and confidence.
Investors’ risk appetite shows no sign of waning, which in the absence of any major market-moving economic data or events in Asia should pave the way for further gains across the continent when trading gets underway.
Elsewhere, the International Criminal Court’s prosecutor said he had requested arrest warrants for Israeli Prime Minister Benjamin Netanyahu, his defence chief and three Hamas leaders over alleged war crimes.
Spot silver rose 1.3 per cent at US$32.25 per ounce, platinum was down 0.1 per cent at US$1,045.80 and palladium lost 0.4 per cent to US$1,023.25. REUTERS