PRECIOUS-Gold slips as dollar, bond yields firm after Fed official comment

Credit: REUTERS/ALEXANDER MANZYUK

March 28 (Reuters) - Gold prices eased on Thursday as the U.S. dollar and bond yields ticked higher after comments from a Federal Reserve official on interest rate cuts, while investors looked forward to more economic data for policy clues.

FUNDAMENTALS

* Spot gold XAU= was down 0.2% at $2,189.29 per ounce, as of 0139 GMT.

* U.S. gold futures GCcv1 edged 0.1% lower to $2,188.30 per ounce.

* Fed Governor Christopher Waller said on Wednesday recent disappointing inflation data affirms the case for the U.S. central bank holding off on cutting its short-term interest rate target.

* The dollar =USD was up 0.1% against its rivals, making gold more expensive for other currency holder, while yields on 10-year Treasury notes US10YT=RR also rose. US/

* Investors now look forward to the U.S. core personal consumption expenditure (PCE) price index report due on Friday to gauge when the Fed may begin cutting interest rates.

* The PCE price index was seen rising 0.3% in February, which would keep the annual pace at 2.8%. Also on investor radar is the weekly U.S. initial jobless claims report due later in day.

* Traders are pricing in a 62% probability that the Fed will begin cutting rates in June, down from a 70% chance seen on Wednesday, according to the CME Group's FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.

* India's gold imports are set to plunge by more than 90% in March from the previous month to hit the lowest level since the COVID pandemic, as banks cut imports after record-high prices hit demand.

* Spot silver XAG= slipped 0.4% to $24.56 per ounce, platinum XPT= rose 0.4% to $897.10 and palladium XPD= gained 0.4% to $987.66.

DATA/EVENTS (GMT)

0700 UK GDP QQ, YY Q4

0855 Germany Unemployment March

1230 US GDP Final Q4

1230 US Initial Jobless Claim weekly

1400 US U Mich Sentiment Final March

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 9590227221; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

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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