Gold edges higher; hovers near one-week low on tempered Middle East fears
Policymakers including U.S. Federal Reserve Chair Jerome Powell last week backed away from providing any guidance on when interest rates might be cut, saying instead that monetary policy needs to be restrictive for longer.
edged up on Tuesday but hovered near a one-week low hit in the previous session, as worries over a wider Middle East conflict subsided, boosting investors' risk appetite and lowering bullion's safe-haven demand.FUNDAMENTALS
* Spot gold rose 0.3% to $2,333.29 per ounce, as of 0116 GMT. U.S. gold futures were unchanged at $2,346.70 per ounce.* Tehran downplayed Israel's retaliatory drone strike against Iran, in what appeared to be a move aimed at averting regional escalation.
* Policymakers including U.S. Federal Reserve Chair Jerome Powell last week backed away from providing any guidance on when might be cut, saying instead that monetary policy needs to be restrictive for longer.
* Higher interest rates reduce the appeal of holding non-yielding gold.
* Markets are also awaiting the release later this week of the March personal consumption expenditure (PCE) data - the Fed's preferred gauge - to further ascertain the trajectory of monetary policy.
* European Central Bank officials are sticking to plans to cut interest rates multiple times this year, even as higher U.S. inflation delays a pivot to looser policy by the Fed.
* Russian metals giant Nornickel, the world's largest palladium producer and a major producer of high-grade nickel, said palladium output increased by 3% in the first quarter to 745 koz and output is seen at 2,296-2,451 koz in 2024.
* Asian stocks should have a spring in their step on Tuesday, supported by a recovery in tech shares, calm in fixed income markets, and a cooling in geopolitical tensions.
* Spot silver rose 0.4% to $27.31 per ounce, platinum was up 0.2% at $919.05, while palladium fell 0.1% to $1,007.58.
DATA/EVENTS (GMT) 0715 France HCOB Mfg, Serv, Comp Flash PMIs April 0730 Germany HCOB Mfg, Serv, Comp Flash PMIs April 0800 EU HCOB Mfg, Serv, Comp Flash PMIs April 0830 UK Flash Comp, Mfg, Serv PMIs April 1345 US S&P Global Mfg, Svcs, Comp Flash PMIs April 1400 US New Home Sales-Units March
