Gold prices remain steady

26 Jun 2024 , 10:12 AM

Gold prices were unchanged on Wednesday, while the dollar and Treasury yields remained steady ahead of a key inflation report anticipated later this week, which might shed further light on the Federal Reserve’s interest rate path.

The spot gold price remained constant at $2,319.14 per ounce. US gold futures remained unchanged at $2,331.00.

The dollar gained 0.1% against its rivals, making gold more expensive for other currency holders, as benchmark 10-year yields moved higher.

The euro, once regarded as a challenger to the dollar’s international position, was deteriorating as an alternative currency, with investors seeking to limit risk exposure shifting to gold instead, according to a report.

This week, traders are looking forward to the U.S. first-quarter GDP estimates on Thursday and the personal consumption expenditures (PCE) price index report on Friday for fresh clues on the timing and magnitude of potential rate reduction this year.

U.S. consumer sentiment fell in June due to concerns about the economic future, although households remained optimistic about the employment market and expected inflation to decline over the next year.

Federal Reserve Governor Lisa Cook said on Tuesday that if the economy performs as expected, the Fed will decrease interest rates, but she declined to predict when.

According to the CME FedWatch Tool, traders are presently pricing in roughly a 65% possibility of a rate cut in September.

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

Sibanye Stillwater, a platinum-group metals producer, may close a metals streaming, or prepayment, contract to raise the funds needed to strengthen its balance sheet in the third quarter.

Spot silver dipped 0.1% to $28.90 per ounce, while platinum increased 0.4% to $985.83 and palladium decreased 0.8% to $940.60.

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