Prior to central bank meetings and this week's important US data, gold is stable

11 Dec 2023 , 09:33 AM

Following a steep drop in the previous session, gold prices steadied on Monday as investors anticipated several significant central bank meetings and the release of U.S. inflation data this week, which could provide further guidance.

Spot gold was up 0.1% at $2,005.85 per ounce, following a roughly 3.3% decline in its worst week in over two months last week. Futures for US gold increased by 0.3% to $2,021.90.

U.S. nonfarm payrolls rose by 199,000 in month, above experts’ projections of 180,000 job growth, according to data released on Friday.

Trader hopes that a rate decrease by the Federal Reserve as early as March were tempered by the better-than-expected jobs report. It did not, however, alter opinions regarding the conclusion of the US rate-hiking cycle.

In order to get additional hints about the direction of interest rates, attention is now focused on Tuesday’s November U.S. consumer price data.

The likelihood of a Fed rate cut in March is now valued by the markets at roughly 45%, down from 60% prior to the jobs report. After the Fed’s two-day policy meeting on Wednesday, traders largely anticipate that rates will remain steady.

On Thursday, the Swiss National Bank, the Bank of England, the European Central Bank, and Norges Bank will all be meeting.

Non-interest bearing bullion is typically supported by lower interest rates.

As demand was hampered by record local prices, physical gold dealers in India raised discounts to seven-month highs last week in an attempt to draw clients.

The U.S. Commodity Futures Trading Commission stated on Friday that COMEX gold speculators reduced their net long position by 11,895 contracts to 132,515 in the week ended December 5.

Spot silver increased by 0.3% to $23.25 per ounce, while palladium increased by 0.3% to $950.13 and platinum increased by 0.5% to $918.88.

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