Gold held a fifth weekly advance, boosted by the Federal Reserve's first rate cut of the year, with investors looking to a key inflation print due Friday for more clues about the US central bank's monetary path.
Bullion was trading around $20 an ounce short of a record high set last week, after the Fed reduced rates by 25 basis points on Wednesday. Prices then retreated from the all-time high after Chair Jerome Powell indicated officials would take a "meeting-by-meeting" approach to future decisions, curbing expectations for rapid easing. Lower rates benefit non-interest bearing gold.
Read More: Bond Traders Lean Into ‘Sweet Spot' Amid Doubts About Fed's Path
Traders will parse incoming data this week, including activity readings in Europe and Friday's personal consumption expenditures price index in the US. The Fed's preferred measure of underlying inflation likely grew at a slower pace last month, which would boost the argument for rate cuts. Additionally, Powell is also due to speak on the economic outlook on Tuesday.
Read More: Key US Inflation Metric to Ease as Focus Turns to Jobs: Eco Week
Traders are still pricing in almost two more rate cuts this year, with the outlook for further Fed monetary easing providing a major catalyst in bullion's 40% surge this year. Prices have also been supported by haven demand due to concerns over geopolitical conflicts and the impact of US President Donald Trump's tariffs on the global economy, along with increased central-bank purchases and holdings in exchange-traded funds.
Read More: Trump's Attack on the Fed Fires Up Gold Bulls Betting on Crisis
Spot gold was 0.1% higher to $3,688.40 an ounce as of 7:36 a.m. in Singapore. The Bloomberg Dollar Spot Index edged up 0.1%. Silver and platinum were steady, while palladium gained.
Source: Bloomberg
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...