Gold prices steady above $5k/oz, more rate cues awaited
Gold’s late-January losses were triggered chiefly by U.S. President Donald Trump nominating Kevin Warsh as the next Fed Chair after Jerome Powell’s term expires in May.
SEATTLE (Scrap Monster): Gold prices were rangebound in Asian trade on Monday as market holidays in the U.S., China, and other parts of Asia kept trading volumes muted, with focus turning to a host of upcoming cues on the world’s largest economies.
The yellow metal logged volatile swings in the past two weeks, amid growing uncertainty over the path of U.S. interest rates. But it still settled last week above the closely-watched $5,000 an ounce level.
Spot gold fell 0.3% to $5,028.79/oz, while gold futures for April were flat at $5,047.21/oz by 20:29 ET (01:29 GMT).
Other precious metal prices also moved in a tight range on Monday. Spot silver fell 0.3% to $77.2465/oz, while spot platinum rose 0.4% to $2,076.94/oz.
Trading volumes were thin with Chinese, South Korean, and U.S. markets closed for the day.
US Fed minutes, PCE data in focus
Focus this week is squarely on more cues on the U.S. economy, with the minutes of the Federal Reserve’s January meeting due on Wednesday.
The minutes are expected to provide more insight into the central bank’s plans for interest rates, especially amid growing investor angst over a looming change in Fed leadership.
PCE price index data for December is also due later this week. The print is the Fed’s preferred inflation gauge, and is likely to factor into the central bank’s long-term outlook on rates.
Precious metal prices clocked some gains last week as safe haven demand was buoyed by heightened tensions between the U.S. and Iran. Languid consumer price index inflation data from the U.S. also lent some support.
But gold and other precious metals were still nursing steep losses from late-January, and have clocked largely whipsaw trade over the past two weeks amid growing uncertainty over U.S. monetary policy.
Gold’s late-January losses were triggered chiefly by U.S. President Donald Trump nominating Kevin Warsh as the next Fed Chair after Jerome Powell’s term expires in May.
Warsh was viewed as a less dovish pick, sparking concerns that U.S. rates will stay relatively high in the long term.
Courtesy: www.investing.com