Gold steady ahead of US inflation data release

Gold prices stabilized on Thursday as investors digested comments from Federal Reserve Governor Christopher Waller on cutting interest rates and awaited more US economic data to gauge the course of monetary policy.

According to Reuters, by 0503 GMT, gold in spot transactions rose 0.1% to $2,195.59 per ounce, and US gold futures rose 0.2% to $2,195.10.

“The Federal Reserve has indicated its desire to lower interest rates, and there are concerns about geopolitical risks that are still affecting the markets related to wars, whether in Ukraine or in the Middle East, which supports gold,” said Ilya Spivak, head of global macroeconomics at Tasty Life.

He added, “Gold prices are trading in a limited range most of the time this month, and exceeding the level of $2,225 per ounce may push prices towards the level of $2,300.”

Gold hit a record high last week after the US Central Bank expected to cut interest rates three times this year despite the recent high inflation readings.

Waller said on Wednesday that the disappointing recent inflation data confirms the necessity of refraining from reducing the target interest rate in the short term.

Investors are now awaiting the US core personal consumption expenditures price index report scheduled for Friday to calculate the timing of interest rate cuts.

The personal consumption expenditures price index is expected to rise 0.3% in February, which will maintain the annual pace of 2.8%. Investors are also awaiting the weekly report on unemployment claims in the United States, which will be released later on Thursday.

Traders currently expect 62% that the Federal Reserve will start cutting interest rates in June, according to CME Group’s FedWatch tool.

Low interest rates reduce the opportunity cost of holding bullion.

As for other precious metals, silver in spot transactions reached $24.68 per ounce. Platinum rose 0.7% to $899.75, and palladium rose 1.4% to $997.41.