Gold prices eased on Thursday as the U.S. dollar and bond yields ticked higher after comments from a Federal Reserve official on interest rate cuts, while investors looked forward to more economic data for policy clues.
FUNDAMENTALS
* Spot gold was down 0.2% at $2,189.29 per ounce, as of 0139 GMT.
* U.S. gold futures edged 0.1% lower to $2,188.30 per ounce.
* Fed Governor Christopher Waller said on Wednesday recent disappointing inflation data affirms the case for the U.S. central bank holding off on cutting its short-term interest rate target.
* The dollar was up 0.1% against its rivals, making gold more expensive for other currency holder, while yields on 10-year Treasury notes also rose. * Investors now look forward to the U.S. core personal consumption expenditure (PCE) price index report due on Friday to gauge when the Fed may begin cutting interest rates. * The PCE price index was seen rising 0.3% in February, which would keep the annual pace at 2.8%. Also on investor radar is the weekly U.S. initial jobless claims report due later in day.
* Traders are pricing in a 62% probability that the Fed will begin cutting rates in June, down from a 70% chance seen on Wednesday, according to the CME Group’s FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.
* India’s gold imports are set to plunge by more than 90% in March from the previous month to hit the lowest level since the COVID pandemic, as banks cut imports after record-high prices hit demand.
* Spot silver slipped 0.4% to $24.56 per ounce, platinum rose 0.4% to $897.10 and palladium gained 0.4% to $987.66.