PT Solid Gold Berjangka | Gold Steadies Ahead of Key US Data as Traders Seek US Rate Clues
GOLD EMAS Spot Emas Gold Spot PT Solid Gold Berjangka SG Berjangka Solid Group PT SGB
Solid Gold Berjangka | Gold prices remained steady as traders looked on ahead of key data that could give clues as to when the Federal Reserve will begin to cut interest rates.
Bullion was little changed at around $2,400 an ounce in early Asian trading after falling 0.5% on Wednesday. Personal consumption expenditures, the Fed’s preferred gauge of underlying inflation, to be released on Friday, are expected to show softening upward pressure on prices. Lower borrowing costs are usually bullish for precious metals, which do not pay interest.
Investors also chewed over comments from former New York Fed President Dudley. On Wednesday, President Dudley called for a lower borrowing cost at next week’s meeting. For many analysts, such a move is a concern as it indicates the authorities’ haste to avoid a recession.
Swap traders expect the Fed to cut rates by about 66 basis points this year, with the first rate cut expected in September. A rate cut in September is seen as highly unlikely.
Bullion is up about 16% this year, partly on expectations of Fed policy easing. Buying by central banks amid ongoing geopolitical tensions and use as a flight asset in the tumultuous U.S. presidential election have provided additional support.
Spot gold was flat at $2,396.05 at 8:22 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed. Silver, platinum, and palladium were all lower.
Source: Bloomberg