Latest News

Gold holds consistent with financiers cautious ahead of United States CPI

Gold prices held almost steady on Tuesday as market participants preserved caution ahead of key U.S. inflation data, which might toss even more light on the U.S. rate of interest trajectory.

Spot gold was little altered at $2,663.29 per ounce as of 9:40 a.m. ET (1440 GMT) after briefly increasing 0.5% quickly after the Producer Rate Index (PPI) information.

Data showed PPI increased 3.3% on an annual basis in December, versus the 3.4% increase expected by economists polled .

U.S. gold futures fell 0.1% to $2,676.40.

We're going to require to see continued progress on inflation in order to revive those rate of interest cut expectations, said Phillip Streible, primary market strategist at Blue Line Futures.

Individuals are a bit nervous, and they want to be mindful entering into CPI tomorrow, he added.

Investors now wait for the Consumer Price Index (CPI) on Wednesday to evaluate the Fed's policy course. A Reuters survey forecast an annual increase of 2.9%, versus November's 2.7%, and a. month-to-month boost of 0.3%.

Traders currently see the Fed providing 29.4 basis points. worth of rate cuts by the end of the year, data compiled by LSEG. shows.

Bullion is considered a hedge versus inflation, but higher. rates dull the appeal of the non-yielding property.

U.S. President-elect Donald Trump will go back to the White. House on Jan. 20 and has promised to enforce trade tariffs. Experts. expect these to set off trade wars and re-ignite inflation.

UBS kept in mind that a more powerful dollar and raised U.S. yields. will likely stay headwinds in the first half of this year for. gold however needs to be more than offset by need for the metal as a. diversifier.

Spot silver rose 0.4% to $29.71 per ounce, platinum. fell 0.9% to $944.7, and palladium shed 0.6% to. $ 933.00.

(source: Reuters)