Gold prices fell on Thursday while the US dollar and bond yields ticked higher after comments from a Federal Reserve official on interest rate cuts, as investors looked to more economic data for clues on policy.
FUNDAMENTALS
* Spot gold was 0.2% lower at $2,189.29 an ounce as of 0139 GMT.
* U.S. gold futures fell 0.1% to $2,188.30 an ounce.
* US Federal Reserve Governor Christopher Waller said on Wednesday that recent disappointing inflation data confirm the US central bank should hold off on lowering its short-term interest rate target.
* The dollar rose 0.1% against its rivals, making gold more expensive to other currencies, while 10-year Treasury yields also rose.
* Investors are now looking to the U.S. core personal consumption expenditures (PCE) price index report, due Friday, to gauge when the Fed may start cutting rates.
* The PCE price index is expected to rise 0.3% in February, keeping the annual pace at 2.8%. Investors are also looking forward to the weekly US report on initial jobless claims, due later in the day.
* According to CME Group’s FedWatch Tool, traders are anticipating a 62% probability that the Fed will start cutting rates in June, compared to a 70% probability on Wednesday. Lower interest rates reduce the opportunity cost of holding bullion.
* India’s gold imports are set to plunge more than 90% in March from the previous month, reaching the lowest level since the COVID pandemic, as banks cut imports after record high prices dampened demand.
* Spot silver fell 0.4% to $24.56 an ounce, platinum rose 0.4% to $897.10 and palladium rose 0.4% to $987.66.
DATES/EVENTS (GMT) 0700 UK GDP QQ, YY Q4 0855 Germany Unemployment March 1230 US GDP Final Q4 1230 US Initial Jobless Claim weekly 1400 US U Mich Sentiment Final March (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)
Tags: Gold falls dollar bond yields rise Fed official comments March
