Gold prices nudged higher on Tuesday, as market participants awaited further US economic data to gauge the Federal Reserve’s interest rate trajectory for the year. Spot gold was up 0.1% at $2,638.09 per ounce, as of 0242 GMT.
US gold futures were little changed at $2,648.60.
“Gold prices have managed to stabilise amid some cooling off in the US dollar overnight, but higher US Treasury yields may remain a key overhang for further gains,” IG market strategist Yeap Jun Rong said.
The benchmark 10-year Treasury yield hit the highest since May 2024 on Monday after conflicting reports about how aggressive US President-elect Donald Trump’s tariff plans could be when he takes office.
Gold price per tola decreases Rs700 in Pakistan
Investors are now looking to the US jobs report, due on Friday, which could help shed more light on the Fed’s policy path. They are also awaiting the job openings data later in the day, ADP employment numbers and the minutes from the Fed’s December meeting on Wednesday.
“The US non-farm payrolls will be the key risk event this week and a stable unemployment rate at 4.2% may justify a more gradual rate-cutting process, which could see gold prices consolidate further within its tight range for now,” Yeap said.
The Fed can be cautious about any further rate cuts given a solid economy and inflation proving stickier than previously expected, Fed Governor Lisa Cook said.
The central bank’s latest projections in December implied a shift to a more cautious pace of rate cuts this year, with the majority of the policymakers expressing concern that inflation could reignite.
Bullion is considered a hedge against inflation, but high rates reduce the non-yielding asset’s appeal.
COMEX gold speculators cut net long positions by 1,876 contracts to 182,384 in the week ended Dec. 31, 2024, data showed.
Spot silver gained 0.1% to $29.98 per ounce, platinum fell 0.2% to $931.63 and palladium shed 0.1% to $919.44.
Comments
Comments are closed for this article.