Gold prices remain flat in early trade

10 May 2023 , 08:21 AM

Early on Wednesday in Asia, gold prices were unchanged as investors awaited US inflation data, that would influence the U.S. Federal Reserve’s stance on monetary policy.

The spot price of gold was constant at $2,035.39 per ounce. At $2,043.50, U.S. gold futures remained stable.

At 12:30 GMT, the consumer price index (CPI) for the United States is expected.

The current odds that the U.S. central bank would maintain rates at their present level in June are 83%, according to the markets.

On Tuesday, New York Fed President John Williams said it is too soon to determine if the U.S. central bank is finished hiking interest rates, while Fed Governor Philip Jefferson stated that the U.S. economy is slowing in a ‘orderly fashion’.

Even though gold is seen as an inflation hedge, rising interest rates reduce the appeal of non-yielding bullion.

China’s imports fell precipitously in April, while exports increased more slowly, confirming indications of weak domestic demand.

With just three weeks left before the United States may be forced into an unprecedented default, President Joe Biden and top lawmakers agreed on Tuesday to begin negotiations in an effort to end the impasse over raising the $31.4 trillion debt ceiling.

Silver spot prices up 0.2% to $25.66 per ounce, platinum prices increased 0.2% to $1,106.35, and palladium prices increased 0.4% to $1,576.33.

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