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Gold prices remained steady on Tuesday as investors shifted their attention to upcoming US inflation data, which could offer insights into the timing of potential interest rate cuts by the US central bank.
Spot gold settled at $2,170.59 per ounce by 0310 GMT, while US gold futures dipped 0.2 percent to $2,171.20 per ounce.
Federal Reserve’s Rate Cut Expectations
Gold prices surged to record levels last week following indications from Federal Reserve policymakers that they anticipate slashing interest rates by three-quarters of a percentage point by the end of 2024, despite recent high inflation readings.
Chicago Federal Reserve Bank President Austin Goolsbee proposed three interest rate cuts for this year during the central bank’s monetary policy meeting last week. However, Federal Reserve Board of Governors member Lisa Cook advised caution in deciding when to implement rate cuts.
Investors are eagerly awaiting the release of the US Core Personal Consumption Expenditure Price Index data scheduled for Friday, which is expected to maintain the annual rate at 2.8 percent.
According to CME Group’s Fed Watch service, traders foresee a 70 percent chance of interest rate cuts starting in June, a move that would decrease the opportunity cost of holding gold.
The dollar index declined 0.3 percent against major currencies, making gold purchases cheaper for holders of other currencies.
Performance of Other Precious Metals
In addition to gold, silver settled at $24.68 per ounce in spot transactions, while platinum and palladium both experienced gains, reaching $906.10 and $1,009.14 per ounce, respectively.
