Gold prices edge higher as markets await Fed minutes, CPI data

The U.S. CPI data and the minutes of the Fed's March policy meeting are due on Wednesday, which could help gauge the timing of the widely-expected rate cuts.

prices edged up on Tuesday, hovering slightly below a record high as investors awaited the U.S. Federal Reserve's policy meeting minutes and key data for cues on the timing and depth of interest rate cuts.

FUNDAMENTALS

* Spot gold was up 0.1% at $2,340.09 per ounce as of 0051 GMT, after hitting a record high of $2,353.79 on Monday.

* U.S. gold futures edged 0.3% higher to $2,358.80 per ounce.

* The U.S. and the minutes of the Fed's March policy meeting are due on Wednesday, which could help gauge the timing of the widely-expected rate cuts.

* Americans' outlook for inflation was mixed last month amid expectations for bigger prices rises across a range of key goods and services, a report from the Fed Bank of New York said.

* Futures traders have reduced bets on how much the Fed will cut rates this year to the lowest level since October, LSEG data showed on Monday.

* Higher interest rates reduce the appeal of holding non-yielding gold.

* China's central bank added 160,000 troy ounces of gold to its reserves in March, it said, in line with the market view that persistent official sector had supported gold's recent rally.

* The Shanghai Gold Exchange will raise margin requirement for some silver futures contracts to 12% from 10% starting from settlement on April 9.

* India's silver imports surged by 260% in February to a record high, as lower duties encouraged large purchases from the United Arab Emirates.

* A global equity index rose slightly on Monday while Wall Street stocks were muted as U.S. bond yields hit their highest levels since late November and investor optimism about the outlook for Fed rate cuts waned.

* Spot silver was steady at $27.85 per ounce, platinum rose 0.9% to $966.71 and palladium gained 0.8% to $1,050.76.

Source: Commodities-Markets-Economic Times

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