GOLD prices inched down on Monday (Feb 26), pressured by a firmer US dollar, while investors awaited further clues on the US Federal Reserve’s timing of this year’s first interest rate cut.
Spot gold was down 0.3 per cent at US$2,030.9 per ounce, as at 0100 GMT. US gold futures edged 0.4 per cent lower to US$2,040.6 per ounce.
The US dollar index was up 0.1 per cent, making greenback-priced bullion less affordable for overseas buyers.
Last week, Fed governor Christopher Waller said he was in “no rush” to cut rates, firming investor bets against US interest rate cuts before June.
While another Fed official sees the US central bank on track to cut interest rates “later this year”, despite stronger-than-expected inflation and labour market data in January.
Most policymakers at the Fed’s last meeting were concerned about the risks of cutting interest rates too soon, minutes showed.
Markets are currently pricing in a 68 per cent chance of a cut in June, according to the CME Fed Watch Tool. Lower interest rates boost the appeal of holding non-yielding bullion.
Meanwhile, a surge of interest in bitcoin exchange-traded funds (ETFs) is prompting investors to swap out holdings in gold-backed ETFs.
Spot platinum was down 0.4 per cent at US$896.95 per ounce, palladium fell 0.3 per cent at US$968.23, while silver lost 0.4 per cent at US$22.86 per ounce. REUTERS
