Gold prices decline..

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FE Team | Published: September 11, 2024 20:52:53

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Gold prices fell on Wednesday as the dollar and Treasury yields firmed after US inflation data prompted investors to scale back expectations of an over-sized rate cut from the Federal Reserve next week, reports Reuters.
Spot gold was down 0.4 per cent at $2,505.17 per ounce at 9:40 am ET (1340 GMT). US gold futures were down 0.4 per cent to $2,533.70.
Following the data, the dollar index was up 0.1 per cent and benchmark US 10-year yields also edged higher, putting pressure on bullion.
US consumer prices rose only slightly in August, but underlying inflation showed some stickiness, which could dissuade the Fed from delivering a half-point interest rate cut next week.
"Inflation is still here. The consumer is still feeling it. If they do a half, it signals they're throwing in the towel here ... a quarter point is something that they're almost forced into doing here at this point," said Bob Haberkorn, senior market strategist at RJO Futures.
Markets are currently pricing in an 85 per cent chance of a 25-basis-point US rate cut, compared to 71 per cent before the data, the CME FedWatch tool showed.
The Fed will lower interest rates by 25 basis points at each of the three remaining policy meetings in 2024, according to a majority of economists in a Reuters poll that found only nine of 101 expected a half-percentage-point cut next week.
Markets will now look towards the US producer price index reading and initial jobless claims due on Thursday.
Among other metals, spot silver was up 0.2 per cent at $28.44 per ounce, platinum rose 0.4 per cent to $941.30, and palladium firmed 1.4 per cent to $978.39.