Gold Prices Hold Steady, Eyeing US Inflation Data

10 Oct 2024 , 09:57 AM

Gold prices were little moved on Thursday, as traders awaited a major US inflation report anticipated later in the day to acquire a better understanding of the Federal Reserve’s monetary policy position.

According to CME’s FedWatch, markets currently expect the Fed to cut interest rates by 25 basis points in November, with a 20% possibility that rates would remain unchanged.

Spot gold was practically steady at $2,609.72 per ounce, having dropped over the previous six sessions. Last month, prices reached a record high. Gold futures remained flat at $2,626.70.

The US Consumer Price Index (CPI) for September is due at 1230 GMT, followed by the Producer Price Index (PPI) data on Friday.

Lower interest rates diminish the potential cost of storing non-yielding bullion.

A “substantial majority” of Fed officials at the September meeting supported starting an era of softer monetary policy with an outsized half-point rate decrease, but agreed that further easing would be data-driven, according to meeting minutes.

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