Gold Prices Hold Steady in Early Trade

15 Oct 2024 , 09:56 AM

Gold prices remained unchanged on Tuesday as investors await the Federal Reserve’s stance on interest rate reductions.

On Monday, Fed Governor Christopher Waller urged “more caution” in future interest rate reduction. He said that the economy is in fantastic shape.

Fed Bank of Minneapolis President Neel Kashkari said more rate cuts are anticipated as the central bank approaches its 2% inflation target.

Spot gold remained unchanged at $2,648.89 per ounce. Gold futures remained steady at $2,665.50.

Bets on a 25-basis-point drop at the Fed’s November meeting were at 86.5%, according to the CME Group’s FedWatch tool. Low interest rates increase the appeal of owning zero-yield bullion.

Investors will be watching U.S. retail sales, industrial output statistics, and weekly unemployment claims, which are due later this week.

Central banks continue to buy gold to diversify their reserves for financial or strategic reasons, according to three central bank representatives speaking at the London Bullion Market Association’s annual conference in Miami.

On the geopolitical front, Israel increased its targets in its battle against Hezbollah militants in Lebanon, killing as least 21 people in an airstrike in the north, health officials reported.

Spot silver remained unchanged at $31.19 per ounce. Platinum remained flat at $992.97.

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