GOLD prices edged higher on Wednesday (Feb 28), as United States bond yields fell, while investor focus was on a key US inflation print and remarks from several Federal Reserve officials this week for fresh clues on the central bank’s interest rate trajectory.
Spot gold edged 0.1 per cent higher at US$2,031.99 per ounce (Oz), as at 0135 GMT. US gold futures fell 0.2 per cent to US$2,041.00/Oz.
Benchmark 10-year US Treasury yields slipped to 4.2934 per cent from 4.3150 per cent on Tuesday, making non-yielding bullion more appealing, while the US dollar held steady.
Fed governor Michelle Bowman on Tuesday reinforced the US central bank’s patient stance on easing. She signalled that she is in no rush to cut rates, particularly given upside risks to inflation.
At least 9 more Fed officials are due to speak this week.
Traders are betting on about 78 basis points (bps) of rate cuts for 2024, with a 61 per cent chance of the first quarter-point (25 bps) cut coming in June, according to LSEG’s interest rate probability app IRPR. Lower interest rates boost the appeal of holding non-yielding bullion.
Data on Tuesday showed US durable goods orders posted the largest drop in nearly four years in January. US consumer confidence also slid in February.
Markets now await the US Federal Reserve’s preferred gauge of inflation – the core personal consumption expenditures price index – on Thursday.
Top bullion consumer China’s monthly net gold imports via Hong Kong surged 51 per cent in January to their highest since mid-2018, official data showed on Tuesday.
Spot platinum rose 0.2 per cent to US$890.25/Oz, while palladium edged 0.1 per cent higher to US$937.02/Oz, and silver climbed 0.1 per cent to US$22.46/Oz. REUTERS
