Gold prices steadied on Wednesday, after posting its biggest decline in a month in the previous session after a sticky US inflation report boosted bond yields and slightly tempered hopes for a June interest rate cut from the Federal Reserve.
Gold price per tola decreases Rs100 in Pakistan
Fundamentals
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Spot gold edged 0.1% up to $2,158.26 per ounce, as of 0151 GMT. US gold futures fell 0.1% to $2,163.50.
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US consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation.
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The Consumer Price Index (CPI) rose 0.4% last month. In the 12 months through February, it increased by 3.2%, just above the 3.1% estimate, after advancing 3.1% through January.
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Bullion fell 1.1% on Tuesday, its worst single-day decline since Feb. 13, when data showed consumer prices also increased more than expected in January.
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Market expectations for the timing of the Fed’s first rate cut were slightly tempered, pricing in a 68% chance of a cut of at least 25 basis points in June, according to LSEG’s interest rate probability app, down from 72% on Tuesday before the data.
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Lower rates boost the appeal of non-yielding bullion.
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The inflation reading gave a push higher to US 10-year Treasury yields and the dollar. The 10-year Treasury yield got an extra lift after weak demand at the Treasury’s auction of $39 billion of the benchmark note.
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Elsewhere, Ukraine pounded targets in Russia on Tuesday with dozens of drones and rockets in an attack that inflicted serious damage on a major oil refinery and sought to pierce the land borders of the world’s biggest nuclear power with armed proxies.
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Spot platinum fell 0.1% to $923.70 per ounce, palladium dropped 0.7% to $1,034.61 and silver shed 0.1% to $24.14.
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