Pro Aurum, a precious metals dealer, has a safe on his table with gold bars of various sizes.
Sven Hoppe | Picture Alliance | Getty Images
Gold prices were stuck in a narrow range on Tuesday as investors’ attention turned to U.S. inflation data due later this week, potentially giving more clarity on the timing of the Federal Reserve’s first interest rate cut of the year. There is sex.
As of 0310 GMT, spot gold was flat at $2,170.59 an ounce. US gold futures fell 0.2% to $2,171.20 an ounce.
“We’re short on new catalysts, but for now the market seems to be calming down,” said Kyle Rodda, financial markets analyst at Capital.com. He is taking his last breath.”
“The next move will likely depend on the release of the PCE index this week. Evidence of further disinflation in the US will allay fears that prices will accelerate or at least re-establish higher levels. “It’s going to be very bullish for gold.”
Gold prices hit record highs last week after Fed policymakers said they still expect to cut interest rates by three-quarters of a percentage point by the end of 2024 despite recent high inflation. Recorded.
Chicago Fed President Austan Goolsby said Monday that last week’s Fed policy meeting decided to cut interest rates three times this year.
Meanwhile, Federal Reserve President Lisa Cook warned that the U.S. central bank needs to proceed with caution when deciding when to start cutting interest rates.
Investors are now looking forward to the release of the US Core Personal Consumption Expenditure Price Index data on Friday. The PCE price index is expected to rise 0.3% in February, keeping the annual pace at 2.8%.
Traders are pricing in a 70% chance that the Fed will start cutting interest rates in June, according to CME Group’s FedWatch tool. When interest rates fall, the opportunity cost of holding bullion decreases.
Meanwhile, the dollar index fell by 0.3% against its competitors, making gold cheaper for holders of other currencies.
Spot silver fell 0.2% to $24.63 an ounce, platinum fell 0.1% to $901.30 and palladium fell 0.1% to $1,003.75.
