PRECIOUS-Gold climbs on hopes for sizeable Fed rate cuts this year

Credit: REUTERS/KIM HONG-JI
       Feb 1 (Reuters) - Gold prices rose on Thursday as
investors held on to hopes that the Federal Reserve would cut
interest rates by a significant amount this year, even after the
U.S. central bank pushed back against the idea of a cut in
March.

    FUNDAMENTALS
    * Spot gold  rose 0.4% to $2,045.65 per ounce by 0213
GMT. On Wednesday, bullion touched a more than two-week high of
$2,055.89 before paring gains to end the session 0.1% higher.
    * U.S. gold futures  fell 0.2% to $2,063.20.
    * The Fed left interest rates unchanged and knocked down the
idea that the U.S. central bank could cut rates in the spring.
    * The Fed dropped a longstanding reference to possible
further hikes in borrowing costs.
    * Futures pared bets for a rate cut in March to 35.5% from
90% at 2023-end, but increased chances of a reduction in May to
96%, according to LSEG's interest rate probability app IRPR.
    * Traders are pricing in about 142 basis points (bps) of Fed
rate cuts for this year, up from bets of about 130 bps of
reductions on Wednesday morning.
    * China's factory activity expanded in January, helping lift
business confidence to a nine-month high, a private-sector
survey showed.
    * Data showed U.S. private payrolls rose far less than
expected in January. Investors are now awaiting Friday's jobs
report for January, which is expected to show that employers
added 180,000 jobs last month. 
    * Investors also took stock of troubles at regional U.S.
lender New York Community Bancorp after it cut its dividend and
posted a surprise loss, renewing fears over the health of
similar lenders.
    * The dollar index <.DXY> rose 0.2%, while yields on
benchmark U.S. Treasury notes  languished near their
lowest in more than two weeks at 3.9426%.
    * Spot silver  rose 0.3% to $22.97 per ounce, platinum
 gained 0.2% to $919.95, and palladium  climbed 0.4%
to $980.34.
    
DATA/EVENTS (GMT)
0500  India     HSBC Mfg PMI             Jan
0500  India     Fy 24/25 Budget          --
0830  Hong Kong Retail Sales Vol         Dec
0850  France    HCOB Mfg PMI             Jan
0855  Germany   HCOB Mfg PMI             Jan
0900  Euro Zone HCOB Mfg PMI             Jan
0930  UK        S&P Global Mfg PMI       Jan
1000  Euro Zone Unemployment rate        Dec
1200  UK        BOE Bank Rate            Jan
1330  US        Initial Jobless Clm      w/e Jan. 27
1430  Canada    S&P Global Mfg PMI       Jan
1445  US        S&P Global Mfg PMI       Jan
1500  US        ISM Mfg PMI              Jan    

 (Reporting by Harshit Verma in Bengaluru; Editing by Subhranshu
Sahu)
 ((Harshit.Verma@thomsonreuters.com;))

Keywords: GLOBAL PRECIOUS/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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