Mumbai, 24 Apr (Commoditiescontrol): Gold prices declined on Wednesday, as fears of an escalation in the Middle East conflict eased, while investors waited for crucial U.S. economic data that could shed more light on the timing of interest rate cuts.
Spot gold was down 0.1% at $2,320.19 per ounce, having hit its lowest since April 5 in the previous session. Bullion's March to April rally drove it up by nearly $400 to an all-time high of $2,431.29 on April 12. U.S. gold futures were down 0.4% at $2,333.80 per ounce.
Fears of a wider regional conflict in the Middle East eased after Iran said it had no plan to retaliate following an apparent Israeli drone attack.
Recent remarks from U.S. Federal Reserve officials hinted at no urgency to cut rates. Traders now expect the first Fed rate cut to come most likely in September.FEDWATCH Higher interest rates reduce the appeal of holding non-yielding gold.
U.S. business activity cooled in April, while rates of inflation eased slightly even as input prices rose sharply, suggesting some possible relief ahead as the Fed looks for signs that the economy is ebbing enough to bring inflation down further.
Markets are awaiting the March personal consumption expenditure (PCE) data - the Fed's preferred inflation gauge - later this week to further ascertain the trajectory of monetary policy.
The European Central Bank must be convinced that inflation is heading back to its 2% target before cutting interest rates, Bundesbank President Joachim Nagel said.
Spot silver fell 0.2% to $27.24 per ounce, platinum was up 0.3% at $910.15, while palladium fell 0.1% to $1,018.50.
(By Commoditiescontrol Bureau: 09820130172)
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