Gold prices remain steady

24 Jun 2024 , 09:54 AM

On Monday, gold prices ticked up as Treasury yields declined, with investors awaiting key U.S. inflation data and Federal Reserve officials’ remarks for insights into potential interest rate adjustments. Spot gold rose by 0.2% to $2,325.53 per ounce as of 0333 GMT, rebounding from a more than 1% drop on Friday. U.S. gold futures also increased by 0.3% to $2,338.10.

The dip in benchmark 10-year U.S. Treasury yields made gold, which doesn’t yield interest, more appealing to investors. Meanwhile, U.S. business activity in June reached a 26-month high, contributing to a stronger dollar, which typically makes gold more expensive for holders of other currencies.

Investors are particularly focused on the upcoming U.S. core Personal Consumption Expenditures (PCE) price index report, scheduled for Friday, which is crucial for understanding the Fed’s inflation outlook and potential rate adjustments. Lower interest rates typically diminish the opportunity cost of holding gold.

Throughout the week, market participants will be monitoring comments from at least five Fed officials, including San Francisco Fed President Mary Daly and Fed Governors Lisa Cook and Michelle Bowman.

In other precious metals, spot silver increased by 0.2% to $29.59 per ounce, platinum remained unchanged at $992.45, and palladium rose by 0.5% to $953.46 per ounce.