GOLD prices held steady on Wednesday (Jul 10), with investors looking towards key US inflation data that could shed more light on the Federal Reserve’s interest rates trajectory.
Spot gold was little changed at US$2,365.09 per ounce, as at 0040 GMT. US gold futures rose 0.2 per cent to US$2,372.60.
Fed chair Jerome Powell said in remarks to Congress that inflation had been improving in recent months and that “more good data would strengthen” the case for looser monetary policy. However, he told lawmakers that he did not want “to be sending any signals about the timing of any future actions” on rates.
Traders currently see a 73 per cent chance of a rate cut in September, according to the CME Group’s FedWatch Tool. Non-yielding bullion’s appeal tends to shine when interest rates are lower.
Market focus is now on the consumer price index data due on Thursday. It is expected to show that headline prices rose 0.1 per cent on the month, while core prices gained 0.2 per cent. That would put annual gains at 3.1 per cent and 3.4 per cent, respectively
Data on Tuesday showed that US small-business confidence increased to a six-month high in June, but inflation worries lingered.
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Global physically backed gold exchange traded funds saw the second consecutive month of inflows in June due to additions to holdings by Europe- and Asia-listed funds, the World Gold Council said on Tuesday.
Spot silver fell 0.1 per cent to US$30.77, platinum ticked up 0.3 per cent to US$986.80 and palladium was flat at US$980.49.
The Guangzhou Futures Exchange said on Tuesday it plans to launch its first platinum and palladium futures contracts in China, the world’s second-largest economy, to offer a domestic price-hedging mechanism. REUTERS
