Gold prices up as US bond yields ease, Fed speakers in focus
Tue June 18 2024
Gold prices edged higher on Tuesday as Treasury yields eased, with market participants awaiting US data and comments from Federal Reserve officials for more clarity on the central bank’s roadmap for interest rate cuts.
Spot gold was up 0.2% at $2,323.97 per ounce, as of 0326 GMT. US gold futures rose 0.4% to $2,339.00. Benchmark 10-year Treasury yields edged lower, making gold more attractive, while the dollar held steady.
“The fact that gold’s direction has alternated over the past four days without really going anywhere of significance tells me the market is waiting for something to wake it from its lull,” said City Index senior analyst Matt Simpson.
“Should US retail sales sink, perhaps gold can make a break of $2,350.” The US retail sales data is due at 1230 GMT later in the day, followed by weekly jobless claims on Thursday and flash purchasing managers’ indexes on Friday.
Data released last week showed a moderation in the labour market and price pressures.
Philadelphia Fed President Patrick Harker revealed on Monday that he is in the single-cut camp, but left the door open to changing his view depending on incoming data.
A long list of Fed officials take to the podium at various venues later in the day, including the Chicago Fed’s Austan Goolsbee and the Richmond Fed’s Thomas Barkin.
Traders are seeing a 76% probability of an interest rate cut in November, according to the CME Group’s FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Among other metals, spot silver was little changed at $29.49 per ounce, platinum rose 1.2% to $976.15 and palladium gained 0.7% to $894.64.