Gold prices held steady on Tuesday, with spot gold flat at $2,350.85 per ounce as of 0350 GMT, following a 1% rise in the previous session. U.S. gold futures rose by 0.8% to $2,352.00. The market is anticipating key U.S. inflation data that could provide insights on the Federal Reserve’s timeline for potential interest rate cuts. Kelvin Wong, a senior market analyst at OANDA, noted that while a strong dollar backed by potential rate hikes poses a risk, spot gold remains positively skewed in the short term with $2,310 as key support for the week.
The core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, is due on Friday, with recent Fed meeting minutes indicating that the policy rate will likely remain steady, though further hikes are still on the table. Traders are increasingly skeptical about multiple rate cuts in 2024, with a 62% chance of a rate cut by November according to the CME FedWatch Tool. Meanwhile, Vietnam’s central bank announced it will stop auctioning gold in the domestic market and introduce a new measure to stabilize prices.