Gold firms on softer dollar, focus on US inflation data
Gold prices hit a record high last week after Fed policymakers indicated they still expected to reduce interest by three-quarters of a percentage point by 2024 end despite recent high inflation readings.
inched higher on Tuesday, buoyed by a weaker dollar as investor focus turns to due later this week, which could shed more light on the timing of the 's first this year.FUNDAMENTALS
* Spot gold was up 0.1% at $2,172.82 per ounce, as of 0122 GMT.
* U.S. gold futures edged 0.1% lower to $2,173.70 per ounce.
* The slipped 0.3% against its rivals, making gold less expensive for other currency holders.
* Gold prices hit a record high last week after Fed policymakers indicated they still expected to reduce interest by three-quarters of a percentage point by 2024 end despite recent high inflation readings.
* Chicago Fed Bank President Austan Goolsbee said on Monday that at the Fed's policy meeting last week he penciled in three rate cuts for this year.
* Meanwhile, Fed Governor Lisa Cook cautioned the U.S. central bank needs to proceed carefully as it decides when to begin cutting interest rates.
* Investors now look forward to U.S. core personal consumption expenditure price index data due on Friday. PCE price index is seen rising 0.3% in February, which would keep the annual pace at 2.8%.
* Traders are pricing in a 70% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. Lower interest rates reduces the opportunity cost of holding bullion.
* Spot gold may retest resistance at $2,183 per ounce, a break above which could lead to a gain into $2,188-$2,196 range, according to Reuters' technical analyst Wang Tao.
* Spot silver was flat at $24.68 per ounce, platinum rose 0.4% to $906.10 and palladium gained 0.4% to $1,009.14.
* U.S. gold futures edged 0.1% lower to $2,173.70 per ounce.
* The slipped 0.3% against its rivals, making gold less expensive for other currency holders.
* Gold prices hit a record high last week after Fed policymakers indicated they still expected to reduce interest by three-quarters of a percentage point by 2024 end despite recent high inflation readings.
* Chicago Fed Bank President Austan Goolsbee said on Monday that at the Fed's policy meeting last week he penciled in three rate cuts for this year.
* Meanwhile, Fed Governor Lisa Cook cautioned the U.S. central bank needs to proceed carefully as it decides when to begin cutting interest rates.
* Investors now look forward to U.S. core personal consumption expenditure price index data due on Friday. PCE price index is seen rising 0.3% in February, which would keep the annual pace at 2.8%.
* Traders are pricing in a 70% probability that the Fed will begin cutting rates in June, according to the CME Group's FedWatch Tool. Lower interest rates reduces the opportunity cost of holding bullion.
* Spot gold may retest resistance at $2,183 per ounce, a break above which could lead to a gain into $2,188-$2,196 range, according to Reuters' technical analyst Wang Tao.
* Spot silver was flat at $24.68 per ounce, platinum rose 0.4% to $906.10 and palladium gained 0.4% to $1,009.14.
