Gold near 2-month low
Friday, 16 February 2024
Gold prices languished near a two-month trough on Thursday as traders lowered expectations of sooner and deeper rate cuts by the Federal Reserve this year, while markets await a slew of US economic data for further clarity, reports Reuters.
Spot gold was up 0.3 per cent at $1,997.10 per ounce, as of 1158 GMT, but hovered near its lowest since Dec. 13 hit on Wednesday. US gold futures rose 0.3 per cent to $2,009.20.
The dollar index slipped 0.1 per cent, making bullion cheaper for other currency holders.
"The (US) inflation data this week was the story that broke the camel's back and tipped gold prices below the $2,000 range," said Craig Erlam, senior markets analyst at OANDA.
Data on Tuesday showed an unexpected spike in US consumer prices, which caused bullion to fall 1.4 per cent on the day.
Fed policymakers will probably wait until June before cutting rates, traders bet after the CPI data. Higher interest rates increase the opportunity cost of holding bullion.
Palladium gained 2.4 per cent to $956.81 an ounce. It surged over 8 per cent on Wednesday on short-covering, reclaiming its premium over platinum.
Spot platinum climbed 1 per cent to $897.95 and silver rose 1.2 per cent to $22.64.