By Sherin Elizabeth Varghese
(Reuters) – Gold prices edged lower on Wednesday as the U.S. dollar and Treasury yields held firm ahead of key inflation data, which could offer more clarity on the path of interest rates. interest of the Federal Reserve.
Spot gold fell 0.2% to $2,356.92 an ounce by 0334 GMT. Prices had reached an all-time high of $2,449.89 on May 20.
U.S. gold futures rose 0.1% to $2,357.80.
The dollar strengthened 0.1%, making gold less attractive to other currency holders, while yields on benchmark U.S. 10-year bonds rose to multi-week highs. (USD/)(United States/)
“Investors will be trying to take profits and prices are trading near $2,350. So prices haven’t corrected, but this is a healthy sort of consolidation after a very strong rally last Monday.” , said ANZ commodities strategist Soni Kumari.
“Investors will look to position themselves in gold because the overall long-term fundamentals look pretty strong for gold right now.”
Data on core personal consumption expenditures (PCE), the Fed’s preferred measure of inflation, is due Friday.
“A more moderate release of U.S. core PCE would make it easier for gold to regain the $2,400 level, given the possible implications of the rate cut schedule,” said market analyst Tim Waterer in chief at KCM Trade, in a note.
Traders currently rate about a 57% chance of a rate cut by November, according to the CME FedWatch tool.
While gold is used as a hedge against inflation, rate hikes increase the opportunity cost of holding gold bullion that does not yield returns.
BHP has struggled to find common ground with Anglo American in negotiations over its takeover offer, with no further concessions as a deadline approaches for the world’s largest miner to submit a binding offer, reports said. five sources.
Spot silver fell 0.4% to $31.99, platinum fell 0.7% to $1,056.06 and palladium gained 0.6% to $978.47.
The International Monetary Fund has raised its Chinese GDP growth forecasts for 2024 and 2025 after a “strong” first quarter. China is a key consumer of ingots and other industrial metals.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; editing by Eileen Soreng and Savio D’Souza)
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