GOLD prices steadied on Monday (Jun 3) as investors looked forward to more US economic data for clues on when the Federal Reserve might start its monetary policy easing this year.
Spot gold was unchanged at US$2,326.86 per ounce as at 0109 GMT. US gold futures edged up 0.1 per cent at US$2,347.40.
The personal consumption expenditures price index increased 0.3 per cent last month, the Commerce Department’s Bureau of Economic Analysis said on Friday, matching the unrevised gain in March.
Traders added to bets the Federal Reserve will deliver a first rate cut in September after the data showed inflation may have made a little progress towards the Fed’s 2 per cent goal last month.
Price cuts by major US retailers and new data showing a slowdown in consumer spending may boost the Fed’s confidence in falling inflation.
Traders are currently pricing in about a 54 per cent chance of a rate cut by September, according to the CME FedWatch Tool.
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Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
Over in the US, the Institute of Supply Management’s nationwide purchasing managers index (PMI) reading is expected at 1400 GMT.
Asia kicks off the new trading month for global markets, with manufacturing PMI data from the continent’s biggest economies setting the local tone and investors still banking on US and other interest rates coming down soon.
Spot silver fell 0.1 per cent to US$30.36 per ounce, platinum was up 0.3 per cent at US$1,041.20 and palladium was unchanged to US$912.73. REUTERS
