GOLD prices held ground on Thursday (Feb 29) as traders awaited the Federal Reserve’s preferred inflation gauge due later in the day that could provide a fresh perspective into when the US central bank could start cutting interest rates.
Spot gold was steady at US$2,035.78 per ounce, as at 0210 GMT. US gold futures edged 0.1 per cent higher to US$2,044.20.
Data on Wednesday showed the US economy grew at a solid clip in the fourth quarter amid strong consumer spending, but appeared to have lost some speed early this year.
New York Fed president John Williams said that even as there’s still some distance to cover in achieving the US central bank’s 2 per cent inflation target, the door is opening to interest rate cuts this year depending on how the data come in.
Boston Fed president Susan Collins said the Fed will likely need to start cutting rates later this year.
At least seven more Fed officials are due to speak on Thursday and Friday.
Traders are betting on about 81 basis points (bps) of rate cuts for 2024, with a 63 per cent chance of the first quarter-point (25 bps) cut coming in June, according to LSEG’s interest rate probability app IRPR.
Lower interest rates boost the appeal of holding non-yielding bullion.
Markets now await a key inflation reading – the core personal consumption expenditures (PCE) price index – at 1330 GMT.
Spot silver rose 0.2 per cent to US$22.51 per ounce, and platinum climbed 0.3 per cent to US$880.89, while palladium fell 0.2 per cent to US$926.97. REUTERS
