Monday, July 22, 2024
Home Commodities Gold flat on firm dollar and yields, investors seek more U.S. data

Gold flat on firm dollar and yields, investors seek more U.S. data

by xyonent
0 comment
1719371632 Photo.jpg

Gold prices were flat on Wednesday as the dollar and Treasury yields firmed ahead of a key inflation reading later this week that could provide more clarity on the direction of Federal Reserve interest rates.

Basics

* Spot gold was unchanged at $2,319.14 an ounce as of 0128 GMT. U.S. gold futures were flat at $2,331.00.

* The dollar rose 0.1 percent against other currencies, helping to boost the price of gold for holders of other currencies, while the yield on the benchmark 10-year Treasury note also rose slightly.

* The euro, once seen as a rival to the dollar’s global role, has weakened as an alternative currency, with those looking to reduce risk exposure turning to gold instead, reports show. * Traders this week are eagerly awaiting preliminary U.S. first-quarter gross domestic product (GDP) figures on Thursday and the personal consumption expenditures (PCE) price index report on Friday for further clues about the timing and size of interest-rate cuts this year. * U.S. consumer confidence fell in June on concerns about the economic outlook, but households are optimistic about the labor market and expect inflation to ease over the coming year. * Federal Reserve Governor Lisa Cook said Tuesday the Fed is on track to cut interest rates if economic performance is in line with expectations, but declined to say when the Fed could act.

* Traders are now pricing in about a 65% chance of a September rate cut, according to the CME FedWatch tool.

* Falling interest rates reduce the opportunity cost of holding non-yielding gold bars.

* Platinum group metals producer Sibanye-Stillwater may enter into metal streaming agreements to raise cash needed to expand its balance sheet in the third quarter.

* Spot silver fell 0.1% to $28.90 an ounce, platinum rose 0.4% to $985.83 and palladium fell 0.8% to $940.60.

Data/Events (GMT) 1000 France Unemployment Class A (South Africa) May 1400 US New Home Sales (May)

You may also like

Leave a Comment

About Us

Investxyon

At InvestXyon, we empower individuals with knowledge for informed investing, financial navigation, and secure futures. Our trusted platform covers investments, stocks, personal finance, retirement, and more.

Feature Posts

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!