Gold prices held steady Thursday as investors digested Federal Reserve Governor Christopher Waller’s comments on interest rate cuts and looked to more U.S. economic data for clues on policy.
Spot gold was flat at $2,194.36 an ounce, as of 0305 GMT. US gold futures were 0.2% higher at $2,193.90.
“The Fed indicated it wants to cut rates and there is a geopolitical risk concern lingering in the markets around these wars, both in Ukraine and in the Middle East, which is supporting gold,” said Ilya Spivak, head of global macro at Tastylive.
“Gold prices have been in a rangebound trade for most of this month and a break above the current resistance level around $2,225 per ounce could see prices head towards $2,300.”
Gold hit a record high last week after the Fed anticipated three rate cuts in 2024, despite recent high inflation figures.
Fed Governor Waller said on Wednesday that recent disappointing inflation data confirm that the US central bank should hold off on cutting short-term interest rates.
Investors are now looking to the U.S. core personal consumption expenditures (PCE) price index report, due Friday, to gauge when the Fed may start cutting rates.
The PCE price index rose 0.3% in February, which would keep the annual pace at 2.8%. Investors will also want to pay attention to the weekly US report on initial jobless claims, due later today.
Traders are currently pricing in a 62% probability that the Fed will start cutting rates in June, according to CME Group’s FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding bullion.
Spot silver was steady at $24.67 an ounce, platinum rose 0.7% to $900.35 and palladium climbed 1.3% to $996.19. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
