KEY POINTS:
– All eyes on U.S. CPI data due on Thursday
– Fed’s Bowman: more rate hikes needed to fight inflation
Gold prices were hemmed into a narrow range on Wednesday as investors held back from making large bets ahead of key U.S. inflation data due later this week.
Spot gold GOLD was little changed at $1,875.68 per ounce as of 0242 GMT, hovering near the eight-month high hit on Monday. U.S. gold futures GOLD rose 0.2% to $1,879.30.
It looks like gold is currently consolidating into a range as the focus turns to the U.S. consumer price index (CPI) data on Thursday, said Ilya Spivak, head of global macro at Tastytlive.
“If the data shows that inflation is softer, then gold might go north of the $1,900 level. However, it would be interesting to see if gold can get much traction beyond that.”
Gold is considered an inflation hedge but is highly sensitive to rising interest rates, which increases the opportunity cost of holding the non-yielding bullion.
Spot silver XAGUSD1! rose 0.1% to $23.63 while platinum PL1! fell 0.5% to $1,075.11.
Palladium XXPDUSD1! slipped 0.4% to $1,774.13. Automakers embed palladium in exhaust pipes to neutralise harmful emissions, but the metal isn’t required for that function in electric vehicles (EVs).
The expansion of EVs is expected to continue in 2023, leading to a small overall decline in palladium’s demand for cars, despite an expected increase in overall new cars across markets, analysts at Heraeus Precious Metals said in a note.
Source : Reuters , Tradingview
Leave a Reply