BENGALURU: Gold prices steadied on Tuesday to hover close to an all-time high hit in July, as the dollar and Treasury yields crept lower after US producer price data cemented hopes for a interest rate cut from the Federal Reserve in September.
Spot gold prices were down about 0.1% at $2,470 per ounce by 1424 GMT due to some profit-taking. Non-yielding gold touched a record high of $2,483.60 on July 17 and is up 20% so far this year.
US gold futures for December delivery rose 0.2% to $2,508.70. The dollar was down 0.2% against its rivals, making gold more attractive for other currency holders, while the Benchmark 10-year note yields slipped to a one-week low.
US producer prices increased less than expected in July, indicating that inflation continued to moderate, data showed on Tuesday.
Traders now look forward to US July consumer price index (CPI) data due on Wednesday and the retail sales data on Thursday for further direction on US central bank’s next policy move.
“Despite recent profit-taking, ongoing geopolitical tensions and recent volatility in the market along with the anticipated rate cut continue to drive investors toward safe-haven,” said Alex Ebkarian, chief operating officer at Allegiance Gold.
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