Mar 11 2024: Gold prices maintained stability, lingering just under the $2,200 threshold during Asian trading on Monday. Investors awaited forthcoming U.S. inflation data to glean insights into potential adjustments by the Federal Reserve regarding interest rates.
Anticipated rate cuts fueled significant increases in bullion prices last week, particularly following remarks from Fed Chair Jerome Powell suggesting that inflation was nearing levels acceptable to the central bank. Additionally, moderate labor market data and weaknesses in both the dollar and Treasury yields provided support for gold prices.
Spot gold edged up by 0.1% to reach $2,180.47 per ounce, while April gold futures also rose by 0.1% to $2,187.00 per ounce as of 00:50 ET (04:50 GMT). Both remained just below the record highs reached on Friday.
Last week, gold futures hit an all-time peak of $2,203.0 per ounce, while spot gold reached a high of $2,195.20 per ounce.
Investor attention now shifts to the U.S. consumer price index (CPI) data scheduled for release on Tuesday, expected to reveal a moderation in inflation levels for February. Nonetheless, inflation is projected to remain well above the Fed’s 2% target.
Market observers closely monitor U.S. inflation dynamics, particularly following statements from Powell and several Fed officials emphasizing concerns about persistent inflation as a key factor influencing potential interest rate cuts.
The possibility of lower interest rates has been a major catalyst for gold prices in recent weeks, particularly with recent labor market data indicating a slowdown in employment growth.
While nonfarm payrolls surpassed expectations in February, the unemployment rate also rose, and January’s payroll figures were significantly revised downward.
Meanwhile, other precious metals saw subdued trading on Monday, though they maintained robust gains from the previous week. Platinum futures inched up by 0.2% to $919.40 per ounce, while silver futures dipped by 0.1% to $24.517 per ounce.
In the industrial metals sector, copper futures for May delivery stabilized at $3.8957 per pound on Monday, following mixed economic indicators from China, the world’s largest importer of copper.
Recent data indicated that China’s copper imports rose in the first two months of the year, albeit at a sluggish pace. Factory activity in the country remained subdued, as reflected in both consumer and producer inflation figures, signaling ongoing challenges for Chinese copper demand.