Spot gold was 0.2 per cent higher at $2,435.33 per ounce and U.S. gold futures were flat at $2,474.20
Gold prices edged higher on Monday as investors looked forward to a key inflation report that could shed more light on the U.S. central bank’s next policy move.
Spot gold was 0.2 per cent higher at $2,435.33 per ounce, as of 0648 GMT. U.S. gold futures were flat at $2,474.20.
I don’t think people will want to make big commitments ahead of the data, according to Ilya Spivak, head of global macro, Tastylive.
The U.S. consumer price index data, due on Wednesday, is expected to show that headline and core prices gained 0.2 per cent month-on-month.
Further inflation progress reflected in the upcoming CPI data could see gold eye for a retest of its all-time high once more, according to IG market strategist Yeap Jun Rong.
Currently, the market sees a 54 per cent probability of a 50 bp rate cut at the Fed’s September meeting, as per the CME FedWatch Tool.
Non-yielding bullion’s appeal tends to shine in a low interest rate environment.
Fed Governor Michelle Bowman softened her usually hawkish tone ever so slightly on Saturday, noting some further “welcome” progress on inflation even as she said inflation remains uncomfortably above the central bank’s 2 per cent goal.
On the top side, resistance for gold appears to be near $2,480-$2,500, but gold will go up ultimately, but there might be a lot of volatility in near term, Spivak said.
Among other metals, spot silver gained 0.9 per cent to $27.69 per ounce, platinum advanced slightly above 1 per cent to $931.55 and palladium was up by 0.7 per cent to $911.75.
