Last updated: June 13, 2023, 1:53 AM IST
New York, United States of America (USA)
Gold prices fell Monday as the dollar and bond yields stabilized, as traders braced for a busy week of key US inflation data and major central bank policy meetings, with all eyes on the Federal Reserve.
Spot gold was down 0.4% to $1,953.77 an ounce at 1:40 PM EDT (1740 GMT). US gold futures closed 0.4% lower at $1,969.70.
The dollar index rose 0.2%, making gold more expensive for foreign buyers, while a rise in US Treasury yields made zero-yielding precious metals less attractive. [USD/] [US/]
“Going into this week with gold is almost like a coin flip,” said Bob Haberkorn, senior market strategist at RJO Futures.
The US consumer price index for May is expected Tuesday at 8:30 a.m. EDT, while the producer price index is expected Wednesday morning, ahead of the Fed’s interest rate decision later that day.
“The fact that if we halted rate hikes, gold would rise quite a bit despite an aggressive (Fed) statement,” Haberkorn said.
Markets had priced in a 76% chance that the Fed would leave rates unchanged, and a 71% chance of a July hike, according to CME’s Fedwatch tool.
The European Central Bank and the Bank of Japan will make their interest rate decisions on Thursday and Friday respectively.
“Gold is trading on the assumption that US interest rates will stay where they are, with any increase likely to send the precious metal crashing towards $1,900 an ounce,” Kinesis Money analyst Rupert Rowling said in a note.
Silver fell 1.3% to $23.95 an ounce, while platinum fell 1.92% to a two-month low of $989.67.
Palladium, used in emission control devices in cars, gained 1.4% to $1,342.27 after hitting its lowest point since May 2019 on Friday.
“Palladium could bounce back above $1,500 in the fourth quarter of this year thanks to improved auto production, but this is currently under pressure from de-stocking by automakers,” said Metals Focus analyst Jacob Smith.
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – Reuters)