GOLD prices were steady on Tuesday (May 28), as investors maintained a cautious stance ahead of key US inflation data, which could provide more insight into the Federal Reserve’s policy trajectory.
Spot gold held its ground at US$2,351.39 per ounce, as at 0110 GMT, after climbing 1 per cent in the previous session.
US gold futures were up 0.8 per cent at US$2,352.30.
Investors are now waiting for the April reading on the personal consumption expenditures price index, the US central bank’s preferred inflation gauge, which is due on Friday.
Traders’ bets signalled growing doubts that the Fed will cut rates more than once in 2024, currently pricing in about a 63 per cent chance of a rate cut by November, according to the CME FedWatch Tool.
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
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China’s net gold imports via Hong Kong slumped 38 per cent in April from the previous month, Hong Kong Census and Statistics Department data showed.
Vietnam’s central bank will stop auctioning gold in the domestic market and launch a measure to stabilise prices of the precious metal, it said.
The Porgera Mine in Papua New Guinea is operating without restriction, operator Barrick Gold Corp said, adding the mine has sufficient fuel on site to operate normally for 40 days.
Elsewhere, an Israeli airstrike triggered a fire that killed 45 people in a tent camp in the Gazan city of Rafah, prompting an outcry from global leaders who urged the implementation of a World Court order to halt Israel’s assault.
Gold tends to perform well during an economic turmoil, with reliability that can help offset the risk of more volatile assets in conditions such as geopolitical uncertainty.
Anglo American was encouraged by key shareholders including BlackRock to continue engaging in talks with BHP Group over its proposed £38.6 billion (S$66.5 billion) mining merger, a source familiar with the matter told Reuters on Saturday.
Spot silver rose 0.4 per cent to US$31.81 per ounce, platinum was up 0.2 per cent at US$1,056.15 and palladium gained 0.4 per cent to US$992.50. REUTERS
