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 09:14:27 11/06/2024 am IST | 5-day change | 1st Jan Change | ||
2,303 USD | -0.30% | -1.10% | +11.66% |
05:51am | Gold slips as markets eye outcome of Fed meet, CPI data | RE |
03:34am | Gold edges lower as traders eye US inflation data, Fed meeting | RE |
Stocks mentioned in the article
Price
|
Change
|
5d. change
|
Capi.
| ||
---|---|---|---|---|---|
2,784 PTS | +0.04% | -0.13% | - | ||
2,303 USD | -0.30% | -1.10% | - | ||
1,442 PTS | -1.61% | -0.51% | - | ||
894.6 USD | -1.34% | -2.38% | - | ||
29.21 USD | -1.66% | -1.17% | - | ||
1.273 USD | +0.07% | -0.29% | - | ||
1.077 USD | +0.04% | -1.05% | - | ||
0.7263 USD | -0.04% | -0.60% | - | ||
0.6595 USD | -0.18% | -0.77% | - | ||
0.612 USD | -0.14% | -0.89% | - | ||
0.012 USD | +0.00% | 0.00% | - | ||
- PTS | -.--% | +1.02% | - | ||
Headlines
- Stock Market
- Commodities
- Commodity
- News Gold
- Gold prices edge higher as softer dollar lifts appeal