Tuesday, December 12, 2023

Gold prices flat as investors await Fed Chair Powell’s speech

Must read

Gold preices steadied on Wednesday as a retreat in U.S. bond yields offset pressure from a stronger dollar, while investors sought more clarity on interest rates from the Federal Reserve after mixed commentary from the central bank officials.FUNDAMENTALS

* Spot gold was flat at $1,968.64 per ounce by 0126 GMT after hitting its lowest since Oct. 24 on Tuesday. U.S. gold futures edged 0.1% higher to $1,975.20.* The dollar rose for a third straight session, up 0.1% against its rivals, making gold more expensive for other currency holders.

* While benchmark 10-year U.S. Treasury yields were hovering near to a five-week low touched last week.

* Chicago Fed President Austan Goolsbee said the U.S. central bank has made significant inroads in its battle to bring inflation down to its 2% target, and attention will turn to how long to keep rates at their current level if that progress continues.

* Minneapolis Fed Bank President Neel Kashkari said the U.S. central bank may have to do more to bring inflation down to its 2% goal, given the recent spate of resilient economic data.

* Fed Governor Michelle Bowman, on the other hand, repeated her view that the central bank will likely need to raise short-term rates again.

* Investors now look forward to comments from Fed Chair Jerome Powell, who is set to speak on Wednesday and Thursday.

* Futures point to a roughly 15% chance of another hike by January, but are pricing in a 22% chance that rate cuts could come as early as March, according to the CME FedWatch tool.

* Lower interest rates boost the appeal of zero-yield bullion.

* Spot silver fell 0.3% to $22.56 per ounce, platinum eased 0.3% to $888.60. Palladium was steady at $1,055.49, hovering near its lowest level since 2018. DATA/EVENTS (GMT) 0700 Germany HICP Final YY Oct 0745 France Reserve Assets Total Oct

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

Source link

More articles

Leave a Reply

Latest article