GOLD prices were steady on Tuesday (Feb 27), as investors awaited a key United States inflation reading due later this week that could provide more information on how soon the Federal Reserve might begin cutting interest rates.
Spot gold was little changed at US$2,031.03 per ounce, as at 0056 GMT. US gold futures edged 0.1 per cent higher to US$2,040.5 per ounce.
Benchmark 10-year Treasury yields slipped to 4.2775 per cent from 4.2990 per cent on Monday, making non-yielding bullion more appealing.
Data on Monday showed sales of new US single-family homes rose less than expected in January, while Dallas Federal Reserve monthly manufacturing activity index came out positive.
Recent remarks from Fed policymakers suggested the US central bank was in no rush to cut interest rates, largely cementing bets against any rate cuts before June.
Markets are currently pricing in about 80 basis points of rate cuts for 2024, with a 62 per cent chance of the first quarter-point 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 data on US durable goods orders due later in the day and the US Federal Reserve’s preferred gauge of inflation – the core personal consumption expenditures price index – on Thursday.
Investors were also watching the risk that US government agencies could be shut down if Congress cannot agree on a borrowing extension by Friday.
Spot platinum rose 0.2 per cent to US$881.75 per ounce, while palladium fell 0.2 per cent to US$949.36, and silver was flat at US$22.52 per ounce. REUTERS
