Gold Prices Steady as Markets Await US Inflation Data and Interest Rate Clarity
Gold prices remain steady ahead of crucial inflation data releases in the US. Spot gold is holding at $4,396.69 per ounce as market participants await key economic indicators that may influence the Federal Reserve's interest rate path.
The Fed has signaled it will keep rates steady for the rest of this year, according to a Reuters poll. However, the CME FedWatch Tool indicates markets assign a 60% probability of a US rate increase this month. Higher interest rates typically make non-yielding assets less attractive to investors.
The European Central Bank is set to raise interest rates on Thursday for the second time this year in an effort to combat energy-driven inflation triggered by the Iran war.
In other metals, spot silver is flat at $67.30 per ounce, platinum rose 0.1% to $1,897.57, and palladium gained 0.2% to $1,355.44. The global platinum market will swing to a surplus for the first time since 2022 this year due to weaker investment and jewellery demand.