Gold subdued ahead of US inflation data, Warsh remarks
NEW YORK: Gold prices edged lower on Tuesday, while investors awaited key US inflation data and remarks from the Federal Reserve chair due later this week to gauge the outlook on monetary policy.
Gold prices dipped on Tuesday as investors awaited crucial US inflation data and Federal Reserve chair remarks to assess the direction of monetary policy. Spot gold declined by 0.3% to $4,157.90 per ounce, while December futures settled 0.3% lower at $4,177.30 per ounce. Bob Haberkorn, a senior market strategist at StoneX, noted that market participants are holding their breath to see the impact of upcoming inflation figures.
The Federal Reserve chair is set to deliver his final speech before the rate meeting on Thursday, with traders expecting a more subdued session ahead of the Wednesday and Thursday events. The Consumer Price Index data is due out on Wednesday, while Thursday's Producer Price Index figures and Fed Chair Kevin Warsh's comments will be closely scrutinized.
Christopher Waller, a Fed Governor, stated that recent increases in US bond yields are indicative of robust economic growth rather than heightened inflation expectations, which remain well contained. Analysts at Commerzbank highlighted the challenges gold faces when interest rates rise, as it no longer offers any yield, and mounting debt levels and bond yields could intensify fiscal burdens for governments.
In other commodities, silver slipped 1.8% to $59.25 per ounce, platinum dipped 1.4% to $1,661.18 per ounce, and palladium decreased 1.5% to $1,126.95 per ounce.
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- Gold futures tick lower ahead of key U.S. inflation data seekingalpha.com
