GOLD NEWS

Gold holds steady as investors await US data for more Fed clues

Mon June 03 2024

Gold prices steadied on Monday as investors looked forward to more U.S. economic data for clues on when the Federal Reserve might start its monetary policy easing this year.

FUNDAMENTALS

* Spot gold was unchanged at $2,326.86 per ounce as of 0109 GMT. U.S. gold futures edged up 0.1% at $2,347.40.

* The personal consumption expenditures (PCE) price index increased 0.3% last month, the Commerce Department's Bureau of Economic Analysis said on Friday, matching the unrevised gain in March.

* Traders added to bets the Federal Reserve will deliver a first rate cut in September after the data showed inflation may have made a little progress toward the Fed's 2% goal last month.

* Price cuts by major U.S. retailers and new data showing a slowdown in consumer spending may boost the Fed's confidence in falling inflation.

* Traders are currently pricing in about a 54% chance of a rate cut by September, according to the CME FedWatch Tool.

* Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.

* Over in the U.S., the Institute of Supply Management's (ISM) nationwide PMI reading is expected at 1400 GMT.

* Asia kicks off the new trading month for global markets, with manufacturing PMI data from the continent's biggest economies setting the local tone and investors still banking on U.S. and other interest rates coming down soon.

* Spot silver fell 0.1% to $30.36 per ounce, platinum was up 0.3% at $1,041.20 and palladium was unchanged to $912.73.

Source: http://in.reuters.com