PT Solid Gold Berjangka | Gold Steady as Markets Await Inflation Data for Rate Path Clues
Gold held last week’s loss as investors looked ahead to crucial US inflation figures due Tuesday, which will offer clues on the path forward for interest rates.
The consumer price index excluding food and fuel, a measure favored by economists as a better indicator of underlying inflation, is seen increasing 0.3% for a third month, which could support a hawkish stance from Federal Reserve officials. Higher rates are typically negative for non-interest bearing gold.
Even as markets are still largely leaning more dovish on the rates outlook, the precious metal has lately come under pressure amid increasing doubts over whether monetary tightening has ended. Fed Chair Jerome Powell said last week that the central bank won’t hesitate to hike further if needed.
Bullion surged to more than $2,000 an ounce in the wake of last month’s attacks by Hamas on Israel. Fears over a wider escalation in the conflict have subsided in the past two weeks, easing demand for safe-haven assets such as gold.
Spot gold was little changed at $1,939.82 an ounce as of 7:45 a.m. in Singapore, after declining 2.6% last week. The Bloomberg Dollar Spot Index was steady. Silver, palladium and platinum climbed.
Source : Bloomberg,PTSGB, Solid Group, Solid Gold Berjangka