(Bloomberg) — Gold held a small advance, with markets looking ahead to this week’s US inflation data for clues on the size of the Federal Reserve’s expected rate cut at its meeting next week.
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Bullion traded near $2,500 an ounce, after climbing 0.4% in the previous session, as traders prepared for the US consumer price index report due Wednesday. The figures are expected to show a 2.5% increase in August from a year earlier, which would be the smallest gain since 2021. That’s likely to reinforce the case for Fed easing, with markets now focusing on signs of weakness in the labor market for hints about just how aggressively officials will cut. Lower rates are typically positive for the non-interest bearing precious metal.
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Gold has surged more than 20% this year, boosted by robust purchasing by central banks as well as expectations of Fed rate cuts. The precious metal has also been supported by haven demand amid ongoing conflicts in the Middle East and Ukraine
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Spot gold was flat at $2,506.27 as of 7:29 a.m. in Singapore, after peaking at a record $2,531.75 in August. The Bloomberg Dollar Spot Index was steady. Silver was little changed, while palladium and platinum edged higher
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