GOLD prices inched higher on Monday (Jun 24) as Treasury yields edged lower, while investors await economic data and comments from Federal Reserve officials through this week for clarity on the US central bank’s timeline on interest rate cuts.
Spot gold was up 0.2 per cent at US$2,324.36 per ounce, as at 0155 GMT. US gold futures also edged 0.2 per cent higher to US$2,336.70.
Benchmark 10-year US Treasury yields edged down and were last at 4.2496 per cent, making non-yielding bullion more attractive for investors.
US business activity crept up to a 26-month high in June amid a rebound in employment. Data from last week showed first-time applications for US unemployment benefits fell moderately.
Traders are looking out for the US core personal consumption expenditures (PCE) price index report – the Fed’s preferred measure of inflation – due on Friday to get more cues on the timing and scale of rate cuts.
Investors also look forward to comments from Fed officials set to speak this week.
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Traders are currently pricing in about a 66 per cent chance of a Fed rate cut in September, according to CME FedWatch Tool.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Swiss gold exports in May were down from the previous month, owing to reduced shipments to India and Hong Kong, according to customs data.
Physical bullion demand in India, the world’s second-largest gold consumer, slowed down last week as prices approached near record high levels, dampening retail purchases in the absence of festivals.
Spot silver rose 0.1 per cent to US$29.55 per ounce, platinum was down 0.2 per cent at US$990.30 and palladium lost 0.1 per cent to US$947.50. REUTERS
