PT Solid Gold Berjangka | Gold Steady as Markets See Lower Odds of Another 2023 Rate Hike

02:20 25 September in Commodity, Gold, SOLID GOLD BERJANGKA | SOLID GROUP

Gold was steady after traders slightly unwound bets on another rate hike this year, with key US inflation data due this week set to show a deceleration.

The annual core metric that strips out food and energy from the Federal Reserve’s preferred inflation measure may have fallen below 4% in August for the first time in nearly two years, according to the Bureau of Economic Analysis. That’s bolstering a view that policymakers are finished with tightening this year, with swaps markets pricing in slightly lower odds of another hike in 2023. Higher rates are typically negative for bullion, which doesn’t offer any interest.

Hedge funds boosted their bullish bets on gold to a six-week high, the latest CFTC data on futures and options show, further underscoring bets on a rate hike pause.

Still, two Fed officials said at least one more rate hike is possible and that borrowing costs may need to stay higher for longer for the central bank to ease inflation back to its 2% target.

Spot gold was little changed at $1,924.38 an ounce at 8:15 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium declined.

Source : Bloomberg


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