Jan 9 (Reuters) - Gold prices edged higher on Tuesday, supported by a pullback in the dollar after an official U.S. report citing consumers expect lower inflation cemented bets for interest rate cuts from the Federal Reserve. FUNDAMENTALS * Spot gold was up 0.2% at $2,032.39 per ounce, as of 0157 GMT, after hitting a three-week low on Monday. * U.S. gold futures also rose 0.2% to $2,038.30 per ounce. * A New York Federal Reserve report on Monday said consumers expect lower inflation as well as weaker income and spending over the next several years. * Fed Governor Michelle Bowman retreated from her persistently hawkish view, saying she now sees U.S. monetary policy as "sufficiently restrictive" and signalled her willingness to support eventual interest-rate cuts as inflation eases. * Lower interest rates decrease the opportunity cost of holding non-yielding bullion. * The dollar index weakened 0.1%, making bullion more attractive for other currency holders. * Earlier this month, a stronger-than-expected jobs data paired with the latest Fed minutes that noted an uncertainty over timings of rate cuts, tempered some sentiments for an early interest rate cut in the U.S.. * Market participants are pricing in an about 62% chance of a rate cut by the U.S. central bank in March, down from a nearly 90% probability seen before the New Year, according to the CME FedWatch tool. * Investors now await Thursday's U.S. consumer price inflation report for further clarity on the scale and depth of Fed's rate cut. * Asia's stock indexes were mostly higher on Tuesday after a tech-led surge on Wall Street. * Meanwhile, core inflation in Japan's capital slowed for the second straight month in December, taking some pressure off the central bank to rush into exiting ultra-loose monetary policy. * Spot silver rose 0.1% to $23.11 per ounce, while platinum climbed 0.5% to $950.08, and palladium gained 0.5% to $1,002.76. DATA/EVENTS (GMT) 0700 Germany Industrial Output Nov 1000 Euro Zone Unemployment Rate Nov 1330 US International Trade Nov (Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips)
Delayed 01:40:56 18/07/2024 am IST | 5-day change | 1st Jan Change | ||
2,457 USD | -0.43% | +3.91% | +19.13% |
10:25pm | TSX Closer: Profit Taking Ends the Market's Five-Day Record Run | MT |
08:01pm | Gold Drops Off a Record High Set on Rate-Cut Expectations as Traders Take Profits | MT |
Stocks mentioned in the article
Price
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Change
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5d. change
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Capi.
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2,915 PTS | +0.37% | +0.21% | - | ||
2,457 USD | -0.44% | +3.91% | - | ||
1,483 PTS | -3.47% | -2.36% | - | ||
956 USD | -0.59% | -3.46% | - | ||
30.28 USD | -3.13% | -1.66% | - | ||
1.301 USD | +0.23% | +1.19% | - | ||
1.094 USD | +0.31% | +0.94% | - | ||
0.73 USD | -0.14% | -0.59% | - | ||
0.6725 USD | -0.09% | -0.40% | - | ||
0.6077 USD | +0.11% | -0.16% | - | ||
0.012 USD | -0.00% | 0.00% | - | ||
- PTS | -.--% | +1.02% | - | ||
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