Globally .. Gold prices rise with the decline of the dollar

by times news cr

2024-02-27T06:52:35+00:00

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/ Gold prices rose on Tuesday as the dollar retreated, while investors awaited the US dollar’s main inflation report in a week full of data releases and speeches from Federal Reserve officials for clues on the timing of a potential interest rate cut by the central bank.

Spot gold was up 0.1 percent at $2,033.34 an ounce by 0620 GMT. Rose gold futures were up 0.2 percent at $2,043.00 an ounce.

Recent comments from Federal Reserve policymakers have suggested that the U.S. central bank is in no rush to cut interest rates, greatly strengthening bets against any rate cuts before June.

Markets are currently pricing in about 79 basis points of rate cuts by 2024, with a 61% chance of the first quarter-point cut in June, according to LSEG’s interest rate probability app, IRPR.

Lower interest rates make it more attractive to hold non-yielding bullion.

At least 10 Fed officials are scheduled to speak this week, as investors focus on the core personal consumption expenditures price index, the Fed’s preferred inflation gauge, due out on Thursday.

Investors are also watching the risks to U.S. stocks. A government shutdown could occur if Congress fails to reach a deal on extending borrowing by Friday.

Spot platinum rose 0.6 percent to $884.90 an ounce, palladium rose 0.3 percent to $951.63, and silver rose 0.1 percent to $22.57 an ounce.

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