Gold prices flat with focus on US economic data
Gold prices were flat on Thursday, as investors turned their focus to U.S. economic data that could offer additional insights into the timing of the Federal Reserve's potential interest rate cuts.
FUNDAMENTALS
* Spot gold was little changed at $2,307.96 per ounce, as of 0027 GMT. U.S. gold futures lost 0.3% to $2,315.00.
* The U.S. weekly jobless
claims data is due at 1230 GMT and the University
of Michigan's consumer
sentiment reading on Friday. The consumer price index data is
scheduled to be released next week.
* According to the CME's
FedWatch Tool, traders are currently pricing in about a 66% chance
that the Fed will cut rates in September.
* Lower interest rates reduce the opportunity cost of holding bullion.
* Fed Bank of Boston President Susan Collins said on Wednesday that the U.S.
economy needs to cool off as an avenue toward getting inflation back to the
central bank's 2% target.
* Meanwhile, the Bank of
England is likely to move closer to its first interest rate cut in
four years as inflation falls, but will probably be cautious about signalling
that a move is imminent.
* On the geopolitical front, Hamas said on
Wednesday it was unwilling to make more concessions to Israel in negotiations
over a ceasefire for Gaza, although talks were still under way in Cairo aimed
at pausing Israel's seven-month-old offensive.
* Spot silver fell 0.2% to $27.29 per ounce.
* Platinum was up 0.4% to $975.75 and palladium gained 0.3% to $954.23.
* The platinum
market faces its largest supply shortfall in 10 years in 2024 as
shipments from Russia return to normal from last year's highs and industrial
demand stays firm, Johnson
Matthey said in a report.