GOLD prices nudged higher on Tuesday (Jul 16) as comments from Federal Reserve chair Jerome Powell bolstered the case for a September rate cut, while investors awaited more US economic data for further monetary policy cues.
Spot gold rose 0.1 per cent to US$2,423.89 per ounce by 0140 GMT. On Monday, prices hit their highest level since May 20, when bullion scaled a record peak of US$2,449.89.
US gold futures were flat at US$2,429.90.
“Powell continued to lay the groundwork for upcoming policy easing. A rate cut in September is now fully priced in by markets, which may keep sentiments in gold prices well-supported in the lead-up,” said IG market strategist Yeap Jun Rong.
Powell said on Monday the three US inflation readings over the second quarter of this year “add somewhat to confidence” that the pace of price increases is returning to the Fed’s target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.
When interest rates decrease, the allure of non-yielding bullion typically increases.
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Investors were awaiting US retail sales data due at 1230 GMT on Tuesday and comments from Fed governors Christopher Waller and Adriana Kugler later this week for further direction.
A subdued retail sales report may underpin gold prices on dovish Fed bets, while a break to a fresh high will mark a continuation of gold’s broader upward trend, which may leave the US$2,600 level on watch next, Yeap said.
Elsewhere, India’s four-week platinum imports from mid-June eclipsed 2023’s total as bullion dealers exploited a loophole by registering alloys containing around 90 per cent gold as platinum to avoid higher duties, government and industry officials said.
Among other metals, spot silver fell 0.9 per cent to US$30.72 per ounce and platinum eased 0.4 per cent to US$991.40, while palladium rose 0.2 per cent to US$951.84. REUTERS
