Gold flat as investors eye US inflation data

30 May 2024 , 08:21 AM

As investors awaited a significant U.S. inflation figure that would offer more details on the Federal Reserve’s likely course of action, gold prices remained unchanged on Thursday.

Spot gold was trading at $2,338.04 an ounce, steady from the previous session’s 1% decline. Gold futures were trading at $2,358.30, down 0.2%.

From early April to mid-May, the U.S. economy grew, but businesses became more pessimistic about the future due to dwindling consumer demand, according to a Fed survey. Meanwhile, inflation continued to rise at a moderate rate as central bankers considered how long to maintain current interest rate levels.

 

The Fed’s preferred inflation indicator, the personal consumption expenditures price index, is expected to release its April reading on Friday, which is eagerly anticipated by investors.

According to the CME FedWatch Tool, traders’ bets indicated rising scepticism that the Fed will lower rates more than once in 2024, with a current pricing in approximately a 61% chance of a rate decrease by November.

Although gold is seen as an inflation hedge, owning non-yielding gold has a greater opportunity cost as interest rates rise.

According to government and industry officials who spoke with Reuters, India’s imports of silver in the first four months of this year have already exceeded the figure for the entire year 2023.

Global mining giant BHP Group abandoned its $49 billion proposal to acquire competitor Anglo American after the latter turned down a desperate plea for an extension, thereby ending the six-week chase.

Spot silver increased 0.2% to $32.03 per ounce, palladium decreased 1.3% to $952.50, and platinum increased 0.5% to $1,040.55.

For feedback and suggestions, write to us at [e-mail]

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/