PT Solid Gold Berjangka | Gold Holds Two-Day Drop as Traders Cut Bets on Fed Rates Pivot
GOLD EMAS Spot Emas PT SGB Solid Gold Berjangka Solid Group SG Berjangka
Solid Gold Berjangka | Gold was solid after a 2-day decline as optimism that the Fed would soon move to monetary easing further diminished.
The precious metal hit a record high in March, supported by bets that the US central bank will soon begin to cut interest rates. Fed officials have tumbled 3 percent since announcing earlier this month that they expect to cut borrowing costs only 3 times this year, compared with their forecast of 3 cuts in the month to March 1, compared with 6 percent in the year to March.
The latest hit to hopes of an imminent pivot to monetary easing came from Federal Reserve Governor Michelle Bowman, who on Tuesday flagged upside risks to the inflation outlook and reiterated the need to keep borrowing costs rising. The swap market in early Asian trading on Thursday could have seen the U.S. central bank cut interest rates by 57 percent from 60 percent the previous day.
Attention should be drawn to the economic indicators scheduled for this weekend, which include the Fed’s preferred gauge of consumer costs and should provide more clues on potential interest rate cuts. Gold remains up to 11% this year, supported by purchases by the central bank and Chinese consumers, as well as the purchase of shelters due to the conflict in Ukraine and the Middle East.
Spot gold, which fell 0.9 percent on Wednesday, was little changed at ounce2, 299.13 ounces as of 9:02 a.m. in Singapore. The Bloomberg Dollar Spot index held steady after rising 0.4 percent in the previous session, deterring bullion buyers. Silver and palladium were immersed, but platinum was flat.
Source: Bloomberg