Gold prices were stuck in a tight range on Tuesday as investor focus turned to U.S. inflation data due later this week, which could shed more light on the timing of the Federal Reserve’s first interest rate cut this year.
Spot gold was little changed at $2,172.58 per ounce, as of 0549 GMT. U.S. gold futures edged 0.1% lower to $2,173.30 per ounce.
Gold hit a record high last week after Fed policymakers indicated they still expected to reduce interest rates by three-quarters of a percentage point by 2024 end despite recent high inflation readings.
Chicago Fed President Austan Goolsbee said on Monday that at the Fed’s policy meeting last week he pencilled in three rate cuts for this year.
Meanwhile, Fed Governor Lisa Cook cautioned the U.S. central bank needs to proceed carefully as it decides when to begin cutting rates.
Investors now look forward to U.S. core personal consumption expenditure price index data due on Friday. The index was seen rising 0.3% in February, which would keep the annual pace at 2.8%.
Traders are pricing in a 70% probability that the Fed will begin cutting rates in June, according to the CME Group’s FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.
The dollar index , meanwhile, slipped 0.3% against its rivals, making gold less expensive for other currency holders.
Spot silver eased 0.2% to $24.63 per ounce, platinum fell 0.3% to $899.87 and palladium edged 0.1% lower to $1,003.68.
Source : Reuters
