Mumbai, 12 Aug (Commoditiescontrol): Gold prices held steady on Monday, with market participants closely watching upcoming U.S. inflation data to gauge the Federal Reserve's likely interest rate decision next month. As of 0153 GMT, spot gold remained little changed at $2,425.94 per ounce, while U.S. gold futures slipped by 0.3% to $2,464.80.
The focus is on the U.S. producer price index (PPI) set to be released on Tuesday, followed by the consumer price index (CPI) on Wednesday. These data points are expected to provide crucial insights into the Federal Reserve's next move. According to the CME FedWatch Tool, there is currently about a 54% chance of a 50 basis point rate cut in September. Lower interest rates generally enhance the appeal of non-yielding bullion.
Over the weekend, Fed Governor Michelle Bowman, known for her typically hawkish stance, hinted at some progress on inflation but noted it remains "uncomfortably above" the central bank's 2% target. This softer tone added to market speculation about a potential rate cut.
In the physical market, demand for gold in India increased slightly last week due to a price correction, although market volatility prompted some buyers to delay purchases. Meanwhile, premiums in China rose as investors sought safe-haven assets amidst ongoing global uncertainties.
Elsewhere in the precious metals market, spot silver declined by 0.6% to $27.29 per ounce, platinum edged up 0.1% to $923.20 per ounce, and palladium remained nearly unchanged at $905.00 per ounce.
(By Commoditiescontrol Bureau: 09820130172)
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