Gold Holds Steady as Investors Await US Clues

11 Nov 2024 , 09:17 AM

As market players anticipated Federal Reserve officials’ remarks and economic data to assess the U.S. interest rate path, gold prices saw no movement in early Asia hours on Monday.

Spot gold was nearly flat at $2,683.78 an ounce. At $2,690.90, U.S. gold futures fell 0.1%.

This week, a number of Fed officials, including Chair Jerome Powell, are expected to speak. The primary data sets scheduled for release this week are the U.S. consumer price index (CPI), producer price index (PPI), weekly unemployment claims, and retail sales.

The Fed lowered interest rates by a quarter of a percentage point on Thursday as its policymakers started assessing the potential complexity of the economy when President-elect Donald Trump assumes office in 2019.

The likelihood of another 25 basis point decrease in December is 65%, according to traders. Zero-yield bullion is more appealing when interest rates are lower.

According to a recent Reuters/Ipsos poll, the majority of Americans think Trump would increase the national debt during his next term, but the majority of Republicans do not share Democrats’ fears about his fiscal management.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.42% from 880.58 tonnes on Thursday to 876.85 tonnes on Friday.

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