Sunday, June 23, 2024
English English French Spanish Italian Korean Japanese Russian Hindi Chinese (Simplified)

Gold prices took a breather from their record-breaking rally on Monday as traders awaited the release of U.S. inflation data to gauge the potential timing of interest rate cuts. Spot gold remained unchanged at $2,177.24 per ounce, while U.S. gold futures dipped slightly by 0.1 percent to $2,183.90 as of 06:02 GMT.

In the UAE, gold prices held steady at the market opening, with 24K gold trading at AED264.0 per gram. Spot gold in the UAE remained stable at $2,181.3 per ounce as of 9:10 am UAE time.

The pause in the gold rally follows a new peak of $2,194.99 reached on Friday, spurred by indications of a cooling U.S. labor market. City Index Senior Analyst Matt Simpson noted a significant increase in net-long exposure by large speculators, suggesting strong demand for gold amid anticipation of Fed rate cuts.

Traders anticipate consumer price inflation (CPI) data for February, scheduled for release on Tuesday, to drive gold prices for the week. A lower CPI reading could bolster the case for an early rate cut, supporting gold prices. Fed Chair Powell’s Congressional testimony last week reinforced expectations of rate cuts in the coming months.

Traders are pricing in the likelihood of three to four quarter-point rate cuts in the U.S., with a 75 percent probability of the first cut occurring in June. Lower interest rates enhance gold’s appeal, as it does not yield interest or dividends.

In other precious metals, spot platinum rose slightly to $913.16 per ounce, while palladium remained steady at $1,019.54, and silver saw minimal movement at $24.30.

Subscribe

* indicates required

The Enterprise is an online business news portal that offers extensive reportage of corporate, economic, financial, market, and technology news from around the world. Visit to explore daily national, international & business news, track market movements, and read succinct coverage of significant events. The Enterprise is also your reach vehicle to connect with, and read about senior business executives.

Address: 150th Ct NE, Redmond, WA 98052-4166

©2024 The Enterprise – All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept