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July 24, 2024
PI Global Investments
Gold

PRECIOUS-Gold slips as dollar, Treasury yields gain


Jan 16 (Reuters) – Gold fell slightly on Tuesday as the
U.S. dollar and Treasury yields jumped, with investors awaiting
comments from a host of Federal Reserve speakers this week for
more clarity on the central bank’s interest rate trajectory.

FUNDAMENTALS

* Spot gold was down 0.2% at $2,050.35 per ounce, as
of 0201 GMT.

* U.S. gold futures rose 0.1% to $2,054.10.

* The dollar index leapt to a 10-day high, making
bullion less attractive for other currency holders, while yields
on benchmark U.S. 10-year Treasury notes rose to
near 4% levels. [US/] [USD/]

* At the end of its Jan. 30-31 meeting, the Fed is expected
to hold its policy rate steady.

* Traders are betting on six rate cuts of 25 basis points
each (bps) this year, with about a three-in-four chance that the
first one could come as soon as March, according to LSEG’s
interest rate probability app, IRPR.

* Lower interest rates increase non-yielding bullion’s
appeal.

* A host of Fed officials are due to speak this week, with
Fed Governor Christopher Waller scheduled to deliver a speech on
the economic outlook before the Brookings Institution at 1600
GMT.

* Elsewhere, European Central Bank officials pushed back
against market expectations for rapid rate cuts this year.

* Japan’s wholesale inflation was flat in December from a
year earlier, slowing for the 12th consecutive month,
underscoring the central bank’s view that cost-push pressure
from rising raw material prices will steadily dissipate.

* Yemen’s Houthi movement will expand its targets in the Red
Sea region to include U.S. ships, an official from the
Iran-allied group said on Monday, as it vowed to keep up attacks
after U.S. and British strikes on its sites in Yemen.

* Spot silver fell 0.2% to $23.15 per ounce, platinum
declined 0.4% to $911.59, and palladium slipped
0.3% to $968.96.

DATA/EVENTS (GMT)
0700 UK

Claimant Count Unemployment Dec
0700 Germany CPI Final

Dec
1330 US

Empire State Mfg Survey

Jan
1330 Canada

CPI BoC Core

Dec
1600 US

Fed Gov. Waller speaks

(Reporting by Harshit Verma in Bengaluru; Editing by Subhranshu
Sahu)
((Harshit.Verma@thomsonreuters.com;))

Keywords: GLOBAL PRECIOUS/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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