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Gold prices remained steady on Thursday as investors absorbed remarks from Federal Reserve Governor Christopher Waller regarding potential interest rate cuts, while also eagerly anticipating upcoming US economic data to discern the trajectory of monetary policy.
In spot transactions, gold edged up by 0.1 percent to reach $2,195.59 per ounce, while US gold futures rose by 0.2 percent to $2,195.10, as of 0503 GMT.
Waller’s comments reinforced the Federal Reserve’s cautious stance on interest rate adjustments, acknowledging the recent disappointing inflation data. Geopolitical tensions, including conflicts in Ukraine and the Middle East, continued to underpin gold prices, reflecting investors’ appetite for safe-haven assets amid uncertainty.
Ilya Spivak, Head of Global Macroeconomics at Tasty Life, noted that gold prices have largely traded within a narrow range this month. Spivak suggested that surpassing the $2,225 per ounce threshold could propel prices toward $2,300, highlighting key levels to watch for potential price movements.
Investors are eagerly awaiting the release of the US core personal consumption expenditures price index report on Friday, a key indicator that could influence expectations regarding the timing of interest rate cuts. Additionally, the weekly report on unemployment claims in the United States, scheduled for later on Thursday, will provide further insights into the health of the labor market.
According to CME Group’s Fed Watch tool, traders currently assign a 62 percent probability that the Federal Reserve will commence interest rate cuts in June. Lower interest rates diminish the opportunity cost of holding gold, making the precious metal more attractive to investors.
Performance of Other Precious Metals
In other precious metals, silver traded at $24.68 per ounce in spot transactions, while platinum saw a 0.7 percent increase to $899.75. Palladium experienced a notable gain of 1.4 percent, reaching $997.41 per ounce.
As investors closely monitor economic data releases and central bank communications, gold prices are likely to remain sensitive to shifts in market sentiment and geopolitical developments in the coming sessions.
