Feb 27 (Reuters) – Gold prices were steady on Tuesday,
as investors awaited a key U.S. inflation reading due later this
week that could provide more information on how soon the Federal
Reserve might begin cutting interest rates.
FUNDAMENTALS
* Spot gold was little changed at $2,031.03 per
ounce, as of 0056 GMT. U.S. gold futures edged 0.1%
higher to $2,040.5 per ounce.
* Benchmark 10-year Treasury yields slipped to
4.2775% from 4.2990% on Monday, making non-yielding bullion more
appealing.
* Data on Monday showed sales of new U.S. single-family
homes rose less than expected in January, while Dallas Federal
Reserve monthly manufacturing activity index came out positive.
* Recent remarks from Fed policymakers suggested the U.S.
central bank was in no rush to cut interest rates, largely
cementing bets against any rate cuts before June.
* Markets are currently pricing in about 80 basis points of
rate cuts for 2024, with a 62% chance of the first quarter-point
cut coming in June, according to LSEG’s interest rate
probability app, IRPR. Lower interest rates boost the appeal of
holding non-yielding bullion.
* Markets now await data on U.S. durable goods orders due
later in the day and the U.S. Federal Reserve’s preferred gauge
of inflation – the core personal consumption expenditures (PCE)
price index – on Thursday.
* Investors were also watching the risk that U.S. government
agencies could be shut down if Congress cannot agree on a
borrowing extension by Friday.
* Spot platinum rose 0.2% to $881.75 per ounce, while
palladium fell 0.2% to $949.36, and silver was
flat at $22.52 per ounce.
DATA/EVENTS (GMT)
1330 US Durable Goods Jan
1330 US Consumer Confidence Feb
(Reporting by Harshit Verma in Bengaluru; Editing by Rashmi
Aich)