Gold prices recover as softer dollar lifts appeal – ET Retail


Gold prices inched higher on Monday, lifted by a softer dollar, as the bullion partially recovered from a slump last week on hot U.S. inflation data that cooled prospects of early rate cuts by the Federal Reserve.

FUNDAMENTALS

Spot gold was up 0.2% at $2,017.77 per ounce, as of 0050 GMT. Bullion lost 0.5% last week.

U.S. gold futures edged 0.3% higher to $2,029.80 per ounce.

The dollar index was down 0.1%, making greenback-priced bullion more affordable to overseas buyers.

Last week, bullion fell to a two-month low after data showed consumer prices rose more than expected last month, but it recouped some of its losses later in the week after U.S. retail sales fell more than expected in January.

Federal Reserve Bank of Atlanta President Raphael Bostic said that while he needs more data to convince him inflation pressures are truly falling, he’s open to lowering rates at some point in the next few months.

Chicago Fed President Austan Goolsbee cautioned against delaying rate cuts for too long even after data showed consumer prices rose more than expected in January.

Traders have pushed back their expectations of a U.S. interest rate cut from March to June. Markets are currently pricing a 77% chance of a cut in June, according to the CME Fed Watch Tool.

Most U.S. markets will remain closed on Monday for the President’s Day holiday.

Spot platinum fell 0.2% at $904.27 per ounce, palladium rose 1.2% at $960.76, while silver was down 0.2% at $23.35 per ounce.

  • Published On Feb 19, 2024 at 09:03 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRetail App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App




Source link

Leave a Reply

Your email address will not be published. Required fields are marked *