38.43 F
London
February 18, 2025
PI Global Investments
Gold

Gold subdued as dollar holds firm on fading rate cut hopes


Gold prices languished near their lowest level in nearly two weeks on Tuesday, weighed down by a firm dollar and elevated Treasury yields, as traders tempered expectations that the U.S. Federal Reserve would aggressively cut interest rates this year.

FUNDAMENTALS

* Spot gold was flat at $2,025.24 per ounce, as of 0216 GMT, after hitting its lowest since Jan. 25 in the previous session.

* U.S. gold futures edged 0.1% lower to $2,041.30 per ounce.

* Data released on Monday showed that the U.S. services sector growth picked up in January as new orders increased and employment rebounded, but suppliers appeared to fall behind, resulting in a measure of input prices rising to an 11-month high.

* Two Fed officials said that the U.S. central bank did not need to be overly concerned by recent higher-than-expected economic growth and employment figures and could take time before deciding to reduce interest rates, echoing Powell’s prudence in determining when to cut rates.

* The dollar index hovered near a three-month high, making bullion more expensive for other currency holders, while yields on benchmark 10-year Treasury held above 4%.

* Asian shares edged up thanks to a bounce in battered Chinese markets, although investors were cautious after a slide on Wall Street amid diminishing expectations of a near-term Fed rate cut, which in turn underpinned the dollar.

* Friday’s blowout U.S. jobs report dashed prospects of early Fed rate cuts. Traders have repriced their bets to four quarter-point cuts for 2024, down from six last Monday, according to LSEG’s interest rate probability app IRPR.

* Investors are awaiting remarks from a host of Fed speakers on Tuesday and the rest of this week for further clues on the timing of rate cuts.

* Spot silver fell 0.1% to $22.33 per ounce, while palladium rose 0.4% to $952.44 and platinum edged 0.2% higher to $898.53.

DATA/EVENTS (GMT) 0330 Australia RBA monetary policy statement — 0700 Germany Industrial Orders Dec 0830 Euro Zone HCOB Construction PMI Jan 0930 UK S&P Global PMI Jan 1000 Euro Zone Retail Sales Dec 1700 US Fed’s Mester speaks — 1800 US Fed’s Kashkari speaks — 1900 US Fed’s Collins speaks —

(Reporting by Harshit Verma in Bengaluru; Editing by Subhranshu Sahu)

 



Source link

Related posts

Elder Scrolls Online Gold Road: Release Date, platforms, gameplay, story

D.William

Amber Rutter has eyes on Olympic gold just three months after giving birth

D.William

Alasdair Gold suggests Spurs could sign a striker who’d “get so many goals”

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.