PRECIOUS-Gold slides on brewing concerns of US rate cuts still far off


By Anushree Ashish Mukherjee

Jan 11 (Reuters) - Gold eased on Thursday to a one-month low as the dollar ticked higher after hotter-than-expected inflation data, while hawkish remarks from Federal Reserve officials fuelled worries that higher interest rates could stay unchanged beyond March.

The dollar index .DXY extended gains after data showed U.S. consumer prices rose more than expected in December, which could delay a much anticipated U.S. rate cut in March.

Cleveland Fed President Loretta Mester said it would likely be too soon for the central bank to cut its policy rate in March, while Richmond Fed chief Tom Barkin said gains on inflation have been too narrowly focused on goods.

Traders see a 67% probability of a rate cut in March, according to the CME Fedwatch tool, compared with about a 71% chance seen before the report. Higher rates dim the appeal of gold, which pays no interest.

"There has been a lot of hype behind bitcoin, so people tend to rotate out of different asset classes and that could also be behind some degree of the selling," Streible added.

Attention will turn to the U.S. producer price index (PPI) due on Friday.

"Gold is just grudgingly lower and (the market) hopes PPI will show softer results tomorrow," said Tai Wong, a New York-based independent metals analyst.

Silver XAG= fell 0.7% to $22.71 per ounce, its lowest since Nov. 14.

Platinum XPT= lost 0.5% to a one-month low of $914.85, and palladium XPD= fell 0.9% to $989.36.

Spot gold price in USD per oz

(Reporting by Anushree Mukherjee and Ashitha Shivaprasad in Bengaluru; Editing by Barbara Lewis and Shailesh Kuber)


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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