GOLD prices ticked up on Tuesday (Jul 9), with investors awaiting Federal Reserve chair Jerome Powell’s testimony and June inflation data to assess the next policy move by the US central bank.
Spot gold was up 0.2 per cent at US$2,364.03 per ounce, as at 0112 GMT, after falling more than 1 per cent on Monday. US gold futures firmed 0.3 per cent to US$2,369.70.
Fed chair Jerome Powell’s testimony before the Senate later in the day and the House on Wednesday could give investors more clues on the US central bank’s likely direction of interest rates.
According to CME’s Fedwatch Tool, markets are pricing in a 77 per cent chance of a September rate cut by the Fed. Lower rates reduce the opportunity cost of holding zero-yielding bullion.
The path US inflation is expected to follow over coming years generally softened in June, amid retreating projections of price increases for a wide array of consumer goods and services, a Fed Bank of New York report released on Monday said.
Market focus is also on June consumer and producer price indexes scheduled to be released on Thursday and Friday, respectively.
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Bullion prices rose more than 1 per cent on Friday after a jobs report showed that the US labour market was losing steam as the unemployment rate climbed to 4.1 per cent.
Spot silver rose 0.4 per cent to US$30.90, platinum edged 1 per cent higher to US$1,006.20 and palladium gained 0.6 per cent to US$1,015.48. REUTERS
