PT Solid Gold Berjangka | Gold Steady After Two-Day Drop Driven by Easing Mideast Tension

01:28 24 April in Commodity, SOLID GOLD BERJANGKA | SOLID GROUP


Solid Gold Berjangka | Gold was steady ahead of US data due later this week that may shed more light on the Federal Reserve’s rate path.

Bullion was trading near $2,300 an ounce after dropping almost 3% in the first two sessions of the week as an easing of tensions in the Middle East sapped haven demand.

The market is now shifting its focus back to US monetary policy. The personal consumption expenditures index — the Fed’s preferred measure of inflation that’s due on Friday — is forecast to show that price pressures remained elevated in March. That would support the case for a delay in rate cuts, a headwind for gold as it doesn’t pay interest.

The odds of a reduction in US borrowing costs in June – the base case scenario earlier in the year – have dropped sharply over the last few weeks, with the swaps market now pricing in just a 16% chance. Some traders in the rates market are now putting on wagers that the Fed won’t cut at all all this year.

Gold is still up around 17% since mid-February, despite the signs that the much-anticipated Fed pivot will be delayed. Instead, it’s been supported by heightened geopolitical risk, central-bank purchases and a sharp uptick in buying by Chinese retail investors.

Spot gold was flat at $2,321.53 an ounce as of 8:53 a.m. in Singapore. The Bloomberg Dollar Spot Index dipped 0.1%. Silver, platinum and palladium were all relatively calm.

Source : Bloomberg