Gold prices edged up on Wednesday as investors hunted for bargains after steep declines in the previous session, while spotlight shifted to U.S. inflation print, which could shed more light on the Federal Reserve's monetary policy path.
Spot gold rose 0.4% at $2,608.18 per ounce by 0200 GMT, after hitting its lowest since Sept. 20 on Tuesday. U.S. gold futures was up 0.3% at $2,614.10.
There is currently some bargain hunting going on as prices fell below the $2,600 mark. Recent sessions saw gold negatively impacted due to a stronger dollar, driven by expectations of inflationary Trump policies affecting the rate cut cycle," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.
Traders see a 60.3% chance of a 25-basis-point cut at Fed's December meeting, down from 77.3% a week ago, according to CME's FedWatch Tool.
Gold is used as a hedge against inflation but higher rates dampen its appeal as it yields no interest.
Market focus is on U.S. Consumer Price Index (CPI) data due at 1330 GMT. Other data sets due this week include Producer Price Index (PPI), weekly jobless claims on Thursday and Friday's retail sales data.
"If the CPI and PPI numbers show that inflation trend is still pretty much contained, then gold could make a move up towards $2,650," added Wong.
Remarks from Fed Chair Jerome Powell and other U.S. central bank officials are also on investors' radar.
The Fed's policy rate continues to act as a brake on the resilient labor market and on inflation that is still above the 2% target, two U.S. central bankers said on Tuesday.
Spot silver rose 0.7% at $30.91 per ounce after hitting a one-month low in the previous session.
Platinum added 0.5% to $952.80 and palladium nudged 0.7% higher at $951.13.(Cay)
Source: CNBC
Gold rises in the early Asian trade. There's a broad commodities uptrend, driven by macro uncertainty, a weaker dollar, and persistent demand for "hard" assets, says Fawad Razaqzada, market analyst at...
Gold (XAU/USD) is extending its decline on Wednesday for a second consecutive day as the US Dollar (USD) and US Treasury yields firm ahead of the release of the Federal Open Market Committee (FOMC) Me...
Silver prices held steady around $36 per ounce on Tuesday following a strong performance in June, underpinned by a weaker dollar amid bets on deeper Federal Reserve rate cuts, rising fiscal concerns, ...
Gold prices fell on Friday and were headed for weekly loss amid a slight uptick in dollar, while investors awaited a key U.S. inflation report that may provide further insight into the Federal Reserve...
Silver price (XAG/USD) continues to climb for the second straight day, trading near $31.10 per troy ounce during Thursday's Asian session. The grey metal surged nearly 4% in the previous session, fuel...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...