Gold hovers near record high on growing rate-cut bets
Gold prices inched up on Tuesday, hovering near a record peak hit in the previous session as recent economic data boosted bets that the U.S. Federal Reserve would start cutting interest rates later this year.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,428.14 per ounce, as of 0110 GMT. Bullion hit a record high of 2,449.89 on Monday.
* U.S. gold futures fell 0.3% at $2,431.80.
* Data showed that U.S. consumer prices increased less than expected in April,
suggesting that inflation resumed its downward trend, boosting expectations for
a September rate cut.
* However, Fed officials are not ready to say inflation is heading to the U.S. central bank's 2% target despite last week's cooling data, with several calling for continued policy caution.
* Bullion is known as an inflation hedge, but
higher rates increase the opportunity cost of holding non-yielding gold.
* Anglo American shareholder
Legal & General Investment Management (LGIM) supports the break-up plan announced by
the company last week as the deadline approaches for BHP Group to log a formal takeover offer.
* Shares of Chinese developers wobbled
as investors fretted that China's "historic" steps to stabilise its
crisis-hit property sector fell short of what is required to foster a
sustainable turnaround in demand and confidence.
* Investors' risk appetite shows no sign of waning, which in the absence of any
major market-moving economic data or events in Asia should pave the way for
further gains across the continent when trading gets underway.
* Elsewhere, the International Criminal Court's
prosecutor said he had requested arrest warrants for
Israeli Prime Minister Benjamin Netanyahu, his defence chief and three Hamas leaders over alleged war crimes.
* Spot silver rose 1.3% at $32.25 per ounce, platinum was down 0.1% at
$1,045.80 and palladium lost 0.4%to $1,023.25.