March 13 (Reuters) - Gold prices edged higher on Wednesday after dropping more than 1% in the previous session, as investors digested hotter-than-expected U.S. inflation data and still banked on a Federal Reserve interest rate cut in June. Spot gold XAU= edged up 0.3% to $2,163.12 per ounce, as of 1047 GMT. Bullion posted its worst single-day drop since Feb. 13 on Tuesday. U.S. gold futures GCcv1 rose 0.1% to $2,168.50. "The market driver behind the decline of gold is quite clear as the U.S. CPI numbers came in higher than expected," said Carlo Alberto De Casa, market analyst at Kinesis Money. "It's just a physiological correction after a long strike of positive days and markets are realizing that the Fed will not cut rates too quickly." Bullion slumped 1.1% on Tuesday as data indicated that U.S. consumer prices rose sharply in February, above expectations and indicating some inflation stickiness. Higher-than-expected inflation means that the US Fed will be under more pressure to keep interest rates higher for longer, weighing on non-yielding assets such as gold. However, Fed policymakers are still seen starting interest-rate cuts in June, even as a government report showed consumer prices rose last month more than expected. Traders now see about a 65% chance of a interest rate cut from the Fed in June, slight lower from the 72% seen before the data, according to the CME Group's FedWatch Tool. "While physical gold demand has been holding up well since 2021, a sharp price rally is likely to temper discretionary gold buying in 2024," analysts at ANZ Research wrote in a note. Focus now shifts to U.S. retail sales, producer price index, and weekly initial jobless claims print due on Thursday, which will provide a further update on the status of the US economy.
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June 13th, 2024 Gold prices saw a slight decline on Thursday after the U.S. Federal Reserve projected only one interest rate reduction for this year, disappointing investors who hoped for two cuts. Despite this, a cooler-than-expected inflation report moderated the decline. Spot gold decreased by 0.2% to $2,317.38 per ounce, as of 1053 GMT, while U.S. gold futures dropped 0.9% to $2,333.10. According to Carlo Alberto De Casa, a market analyst at Kinesis Money, "The market is still digesting a quite intense Wednesday, with U.S. inflation data providing support for gold, while the Fed's hawkish stance kept prices in check." The Fed held rates steady and forecasted only one rate cut in 2024, despite some progress in inflation. Growth and unemployment levels remain better than what the U.S. central bank considers sustainable in the long run. Inflation data indicated the consumer price index was surprisingly flat in May, sending gold prices up by as much as 1% before settling to a 0.3% increase by the end of Wednesday. The Fed is expected to hold off on any action until there is a more convincing decline in price pressures or a significant rise in the unemployment rate. Last week, gold prices saw their biggest sell-off since November 2020, driven by a strong U.S. jobs report and China's central bank pausing its gold purchases. "Despite this, gold remains above $2,300/Oz, suggesting that investors are still viewing corrections and dips as opportunities to bolster their gold holdings," De Casa noted. Gold's surge to successive record highs is likely to continue in the latter half of 2024, with the fundamental case for bullion remaining robust, though $3,000 per ounce appears slightly out of reach, as per traders and industry experts. Additionally, spot silver dropped 1.4% to $29.28 per ounce, platinum fell 1.6% to $948.25, and palladium decreased 1.3% to $894.97.
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Gold prices (XAU/USD) near $2,315 in Monday's European session attracted buying interest as US bond yields dipped amid strong speculation that the Federal Reserve (Fed) could implement two rate cuts in 2024. Expectations for dual rate reductions strengthened due to easing inflationary pressures in the US. The 10-year US Treasury yields approached 4.25% on Monday. The US Consumer Price Index (CPI) report for May indicated a more significant-than-expected slowdown in price increases. Additionally, the preliminary S&P Global Purchasing Managers Index (PMI) for June suggested a moderate easing in cost growth. According to the report, selling price inflation reached a five-month low in June, with notably subdued increases in the services sector and manufacturing. Gold has been consolidating in a range of $2,277 to $2,450 for over two months. Support around the 50-day Exponential Moving Average (EMA) near $2,318 has been key for bullish momentum in Gold prices. The 14-day Relative Strength Index (RSI) fluctuates between 40.00 and 60.00, indicating uncertainty among traders. A break below the low of May 3rd at $2,277 could exert downward pressure on Gold, potentially targeting the high from March 21st at $2,223. Conversely, a breakout above the recent peak on May 20th at $2,450 could propel Gold into uncharted territory.
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March 1 (Reuters) - Gold prices hit a one-month high on Friday and were set for a second straight week of gains as the latest U.S. data pointed to signs of slowing inflation, bolstering investor expectations of an interest rate cut by the Federal Reserve in June. Spot gold XAU= edged 0.5% higher to $2,053.10 per ounce, as of 1226 GMT, its highest level since Feb. 2. U.S. gold futures GCcv1 firmed 0.4% at $2,063. "Inflation figures came out pretty much as expected and probably we are going to have the first rate cut very soon," Natixis analyst Bernard Dahdah said. Data on Thursday showed PCE inflation in January rose 2.4%, the smallest annual increase since February 2021, after a 2.6% advance in December. Receding inflationary pressures have helped the U.S. central bank to set the table for rate cuts likely later this year, potentially boosting demand for the non-yielding bullion. "The Fed rate cuts have to be relatively deep, whereby it's no longer interesting to hold bonds and invest into ETFs instead. I think there's still some space before we see a strong pickup in gold holdings," Dahdah said. The world's largest gold-backed exchange-traded fund, SPDR Gold Trust's GLD holdings HLDSPDRGT=XAU, fell 3.3% in February and is down 6.4% so far this year. Investors will closely watch for remarks from at least six Fed policymakers due later on Friday. On the physical front, gold demand in India was subdued for the week as an uptick in domestic prices dented sentiment and prompted buyers to delay purchases.
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March 5 (Reuters) - Gold prices clung to a three-month peak on Tuesday, supported by softer U.S. manufacturing and construction spending, while investors awaited Federal Reserve Chair Jerome Powell's testimony and key jobs data due this week. * Spot gold XAU= edged 0.1% lower to $2,112.39 per ounce, as of 0230 GMT, but hovered near Monday's levels of $2119.69, its highest since Dec. 4. U.S. gold futures GCcv1 fell 0.3% to $2,120.50. * London's gold price benchmark hit an all-time high of $2,098.05 per troy ounce at an afternoon auction on Monday, surpassing the previous record of $2,078.40 set on Dec. 28, the London Bullion Market Association (LBMA) said. * Market focus is on Fed Chair Powell's two-day congressional testimony on Wednesday and Thursday. * Other economic releases due this week that could move the needle on U.S. rate cut expectations include Institute for Supply Management (ISM) services data at 1500 GMT, and the Job Openings and Labor Turnover Survey (JOLTS) on Wednesday, and the non-farm payroll report on Friday. * Data last week showed U.S. manufacturing slumped further in February and inflation gradually easing, while consumer sentiment stood weak. * The Fed is under no urgent pressure to cut rates given a "prospering" economy and job market, Atlanta Fed President Raphael Bostic said on Monday in remarks that highlighted the risk inflation may get stuck above the central bank's 2% target or be sent even higher by "pent-up exuberance." * Traders now see a 65% chance for a June U.S. rate cut, according to LSEG's interest rate probability app. * Lower interest rates boost the appeal of non-yielding bullion.
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March 7 (Reuters) - Gold prices surged to a record high on Thursday, poised for their seventh consecutive daily rise, led by sluggish U.S. economic data and Federal Reserve Chair Jerome Powell's indications of potential rate cuts in the coming months should inflation alleviate. Spot gold XAU= rose 0.3% to $2,155.42 per ounce, as of 0723 GMT. U.S. gold futures GCcv1 added 0.2% to $2,163.10. Bullion continued its record-breaking rally, reaching an all-time high of $2,161.09 earlier in the session and looked set for its longest intra-day winning streak since at least November 2021. The marginal weakness in U.S. data gave gold a reason to rally, yet the magnitude of movement appears disproportionately large, possibly influenced by large futures buying that commenced on Friday, Marcus Garvey, head of commodities strategy team at Macquarie, said. Gold got a boost on Wednesday after Powell indicated that interest rate cuts were likely in the coming months "if the economy evolves broadly as expected," along with further evidence of falling inflation. Powell will speak again later in the day. Lower rates boost the appeal of non-yielding bullion. Powell's remarks, coupled with data released the same day indicating a softening of labour market conditions, resulted in U.S. Treasury yields and dollar sliding, increasing the appeal of gold. If Friday's labour market data or next week's inflation data shows any weakness, $2,300 would be the short term target based on technical levels, but that would be fairly a short lived phenomenon, before prices correct and consolidate, Macquarie's Garvey said. "We expect central bank buying to continue on the back of geo-political uncertainty. Slowdown in China will keep global growth contained. Hence, in an uncertain financial environment, gold will remain safe investment for banks," said Jigar Pandit, head of commodity and currency business at BNP Paribas' Sharekhan.
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Gold price at four-week high climb to 2084 USD per Ounce. Gold prices hit a four-week high this trading Friday, derived from U.S. inflation data reported Thursday, also slightly weaker U.S. dollar index and higher crude oil prices. Asian and European stock markets were mostly higher in overnight trading. U.S. stock index futures are set to open mixed when the New York day session begins. China’s manufacturing purchasing managers index (PMI) was 49.1 in February versus 49.2 in January and a 49.0 reading expected. The services PMI was 51.4 versus 50.7 January and 50.7 forecast. The composite PMI was 50.9, the same as in January. In other news, the Euro zone consumer price index for February came in at up 2.6%, year-on-year, versus up 2.8% in January and a forecast for up 2.5%. The core CPI was up 3.1%. Technically, the gold futures bulls have gained the slight overall near-term technical advantage. A three-month-old downtrend on the daily bar chart has been negated and prices are starting to trend up. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. First resistance is seen at the overnight high of $2,066.10 and then at $2,075.00. First support is seen at $2,050.00 and then at the overnight low of $2,047.00. www.investapediagold.mk
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Dec 26 (Reuters) - Gold prices rose in muted trade on Tuesday as the dollar and bond yields weakened on the increasing likelihood of rate cuts by the U.S. Federal Reserve as early as March next year. Spot gold XAU= was up 0.6% at $2,064.20 an ounce at 0802 GMT after hitting a more than two-week high of $2,070.39 in the previous session. U.S. gold futures GCcv1 rose 0.3% to $2,075.20. "Gold prices have resumed their upside into the new week after receiving the go-ahead from softer than expected U.S. personal consumption expenditure data last Friday, which validates the dovish rate expectations priced by markets," said IG market strategist Yeap Jun Rong. As long as the trend in economic data remains, gold prices could break above the $2,080 level, he said. Data on Friday showed that U.S. prices fell in November for the first time in more than three and a half years, further slowing inflation and increasing the likelihood of cuts to interest rates. Lower interest rates decrease the opportunity cost of holding non-yielding bullion. Traders are now pricing in an 89% chance of a rate cut by the U.S. central bank in March, according to the CME FedWatch tool. The dollar index .DXY fell 0.1% while the benchmark U.S. 10-year bond yield US10YT=RR edged lower. A weaker U.S. currency makes dollar-priced gold more attractive for those holding other currencies. Meanwhile, the U.S. military carried out retaliatory air strikes in Iraq on Monday after a one-way drone attack by Iran-aligned militants left three U.S. troops wounded. Gold is seen as a safe-haven asset during times of geopolitical uncertainty. Markets in Australia, New Zealand, Hong Kong and the Euro Zone are closed on Tuesday for public holidays.
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