Gold eased on Monday as a slight rise in the U.S. dollar dented safe-haven demand amid trade war concerns, while investors awaited inflation data this week for clues on the Federal Reserve's next interest rate decision.
Spot gold fell 0.2% to $2,905.05 an ounce by 1201 GMT, while U.S. gold futures were steady at $2,911.60.
The dollar index (.DXY), opens a new tab , pared losses slightly after hitting a more than four-month low on Friday. Quantitative Commodity Research analyst Peter Fertig said the dollar's strength was weighing on bullion and he expects further correction below $2,900.
Meanwhile, the focus remains on trade tensions. In his latest warning to Canada, U.S. President Donald Trump said Friday that tit-for-tat tariffs on dairy products and lumber could be imminent. "Gold prices are likely to remain supported around the $2,900 level, with a possible return to the all-time high of $2,956 reached in late February," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
Traders are awaiting US Consumer Price Index (CPI) data on Wednesday and Producer Price Index (PPI) on Thursday for cues on US interest rates.
The Fed has kept interest rates steady after cutting three times in 2024. Market prices reflect expectations for the first cut this year in June.
Bullion is seen as a hedge against inflation and geopolitical uncertainty, but higher interest rates can reduce the appeal of the non-yielding asset.
Data showed China's consumer price index, the top consumer of the metal, missed expectations in February and fell at the sharpest pace in 13 months, while producer price deflation persisted. Spot silver was unchanged at $32.55 an ounce, platinum rose 0.6% to $968.40, and palladium rose 0.2% to $950.50. (Newsmaker23)
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...