https://www.engineeringnews.co.za

Gold holds record high ahead of pivotal US inflation figures

10th April 2024

By: Bloomberg

  

Font size: - +

Gold held a record high as investors positioned for US inflation data that could help shape the Federal Reserve’s outlook on interest rates.

Bullion was little changed after closing at $2 352.78 an ounce in the previous session. Bond traders are growing increasingly bearish ahead of the consumer price index print on Wednesday, while economists surveyed by Bloomberg expect the reading to show some signs of easing price pressures. That would benefit gold, which doesn’t doesn’t pay interest.

The precious metal has rallied more than 18% since mid-February, with the gains perplexing some onlookers because markets have trimmed bets on rate cuts due to strong US economic data. Swaps traders are now pricing around 65 basis points of reductions by the end of this year — less than what the central bank forecast last month.

Those hawkish expectations were reinforced after Federal Reserve Bank of Atlanta President Raphael Bostic on Tuesday reiterated his expectation for one interest-rate cut this year. However, he added he’s open to changing his view to later or additional rate reductions should the economic picture change.

Still, heightened geopolitical risks in the Middle East and Ukraine, plus buying by central banks have added some bullish momentum for gold.

Spot gold was flat at $2 349.06 an ounce at 9:05 a.m. in Singapore. The Bloomberg Dollar Spot Index was little changed. Silver, platinum and palladium declined.

Edited by Bloomberg

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.051 0.998s - 140pq - 2rq
Subscribe Now