Gold prices held steady during early trading on Monday as investors awaited a series of speeches from Federal Reserve officials and upcoming U.S. economic data to gauge future interest rate moves.
Key Points
- Current Prices: Spot gold remained nearly flat at $2,683.78 per ounce, while U.S. gold futures dipped by 0.1% to $2,690.90.
- Focus on Fed and U.S. Data: This week’s key economic indicators include the U.S. Consumer Price Index (CPI), Producer Price Index (PPI), jobless claims, and retail sales data. Remarks from several Federal Reserve officials, including Chair Jerome Powell, could provide further clues on the direction of interest rates.
- Recent Rate Cuts: The Fed recently reduced interest rates by 25 basis points, with traders seeing a 65% likelihood of an additional cut in December. Lower rates often increase the appeal of gold, which offers no yield.
- Market Sentiment on Fiscal Policy: A recent Reuters/Ipsos poll suggests most Americans expect President-elect Trump’s policies to increase national debt, though Republicans show less concern over his fiscal management compared to Democrats.
- Gold Holdings: The SPDR Gold Trust, the world’s largest gold-backed ETF, saw a slight decrease in holdings, falling 0.42% from Thursday to Friday.
- Other Precious Metals: Spot silver rose 0.1% to $31.32 per ounce, platinum increased 0.4% to $972.36, and palladium gained 0.6% to $994.37.
- China’s Economic Data: China reported a slowdown in consumer prices and deepening producer price deflation for October, even as authorities introduced additional stimulus measures to bolster economic growth.
