GOLD prices were steady on Wednesday (Sep 11), as investors awaited upcoming key US inflation data for hints on the depth of interest rate cuts expected from the Federal Reserve next week.
Spot gold edged 0.1 per cent to US$2,517.80 per ounce, as at 0021 GMT. US gold futures rose 0.1 per cent to US$2,546.50
Traders are closely looking at US Consumer Price Index (CPI) data, due later in day, along with the Producer Price Index reading and initial jobless claims on Thursday.
The headline CPI is expected to have risen 0.2 per cent on a month-on-month basis in August, according to a Reuters poll, unchanged from July. However, on a year-on-year basis, it is seen to have gained just 2.6 per cent, down from 2.9 per cent in July.
The Fed will lower interest rates by 25 basis points at each of the US central bank’s three remaining policy meetings in 2024, according to a majority of economists in a Reuters poll.
Lower rates reduce the opportunity cost of holding a zero-yield bullion.
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After mixed August jobs report, the probability of a half-point rate cut next week briefly exceeded 50 per cent, but has since dropped to around 35 per cent.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.20 per cent to 864.46 tonnes on Tuesday.
Republican Donald Trump and Democratic Vice-President Kamala Harris will meet shortly for the first time in their only scheduled debate of the US presidential campaign.
Spot silver was flat at US$28.38 per ounce, platinum gained 0.3 per cent to US$940.35 and palladium was up by 0.83 per cent to US$973.16.
The global platinum deficit in 2024 will be twice as high as previously expected due to inflows to exchange-traded funds and purchases of large bars in China, the World Platinum Investment Council said on Tuesday. REUTERS
