Mumbai, 14 May (Commoditiescontrol): Gold prices held steady on Tuesday, with investors on pause as they anticipate upcoming U.S. inflation data that could influence the Federal Reserve's interest rate decisions. Spot gold was unchanged at $2,335.93 per ounce, following a 1% decline on Monday. U.S. gold futures saw a slight decrease of 0.1% to $2,341.60.
Attention is particularly focused on the U.S. Producer Price Index (PPI) due later Tuesday and the Consumer Price Index (CPI) set for release on Wednesday. These indicators are crucial as they provide insights into inflation trends, influencing the Federal Reserve's policy decisions.
A recent survey by the Federal Reserve Bank of New York revealed that Americans are expecting higher inflation and accelerating home prices in the coming years. Amid these expectations, a majority of economists surveyed by Reuters anticipate the Fed will cut interest rates twice this year, starting in September, which could decrease the opportunity cost of holding non-yielding bullion like gold.
In international markets, India reported an increase in the share of gold within its foreign reserves to 8.15% in March from 7.37% in September, highlighting a growing reliance on the precious metal.
Meanwhile, in the metals market, the World Platinum Investment Council has forecast a deeper global platinum deficit in 2024 due to reduced supply from South Africa and Russia. This comes alongside expectations of lower average prices for platinum, palladium, and rhodium this year, despite a continued structural deficit, according to consultancy Metals Focus.
In other precious metals, spot silver saw a modest increase of 0.4% to $28.29 per ounce, while platinum and palladium each edged 0.3% higher.
(By Commoditiescontrol Bureau: 09820130172)
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