Jan 9 (Reuters) - Gold prices edged higher on Tuesday, supported by a pullback in the dollar after an official U.S. report citing consumers expect lower inflation cemented bets for interest rate cuts from the Federal Reserve. FUNDAMENTALS * Spot gold was up 0.2% at $2,032.39 per ounce, as of 0157 GMT, after hitting a three-week low on Monday. * U.S. gold futures also rose 0.2% to $2,038.30 per ounce. * A New York Federal Reserve report on Monday said consumers expect lower inflation as well as weaker income and spending over the next several years. * Fed Governor Michelle Bowman retreated from her persistently hawkish view, saying she now sees U.S. monetary policy as "sufficiently restrictive" and signalled her willingness to support eventual interest-rate cuts as inflation eases. * Lower interest rates decrease the opportunity cost of holding non-yielding bullion. * The dollar index weakened 0.1%, making bullion more attractive for other currency holders. * Earlier this month, a stronger-than-expected jobs data paired with the latest Fed minutes that noted an uncertainty over timings of rate cuts, tempered some sentiments for an early interest rate cut in the U.S.. * Market participants are pricing in an about 62% chance of a rate cut by the U.S. central bank in March, down from a nearly 90% probability seen before the New Year, according to the CME FedWatch tool. * Investors now await Thursday's U.S. consumer price inflation report for further clarity on the scale and depth of Fed's rate cut. * Asia's stock indexes were mostly higher on Tuesday after a tech-led surge on Wall Street. * Meanwhile, core inflation in Japan's capital slowed for the second straight month in December, taking some pressure off the central bank to rush into exiting ultra-loose monetary policy. * Spot silver rose 0.1% to $23.11 per ounce, while platinum climbed 0.5% to $950.08, and palladium gained 0.5% to $1,002.76. DATA/EVENTS (GMT) 0700 Germany Industrial Output Nov 1000 Euro Zone Unemployment Rate Nov 1330 US International Trade Nov (Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips)
Delayed 21:48:50 10/06/2024 BST | 5-day change | 1st Jan Change | ||
2,310 USD | +0.51% | -0.68% | +11.99% |
Stocks mentioned in the article
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2,782 PTS | +1.00% | -0.56% | - | ||
2,310 USD | +0.51% | -0.68% | - | ||
1,465 PTS | +1.69% | -2.90% | - | ||
907.3 USD | -1.34% | -2.48% | - | ||
29.7 USD | +1.32% | -2.28% | - | ||
1.273 USD | +0.02% | -0.61% | - | ||
1.076 USD | -0.13% | -1.31% | - | ||
0.7268 USD | +0.01% | -0.87% | - | ||
0.661 USD | +0.44% | -0.68% | - | ||
0.6127 USD | +0.36% | -1.05% | - | ||
0.012 USD | +0.02% | 0.00% | - | ||
- PTS | -.--% | +1.02% | - | ||
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