Aswat Asharq Al-Awsat :

Aswat Asharq Al-Awsat : Gold Prices Flat as Market Focus Turns to Fed Speakers

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Prices Flat as Market Focus Turns to Fed Speakers

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices were flat on Tuesday with market participants awaiting US data and comments from Federal Reserve officials for more clarity on the central bank's roadmap for interest rate cuts.
Spot gold was unchanged at $2,317.86 per ounce, as of 0730 GMT. US gold futures rose 0.2% to $2,332.40, Reuters reported.
"The fact that gold's direction has alternated over the past four days without really going anywhere of significance tells me the market is waiting for something to wake it from its lull," City Index senior analyst Matt Simpson said.
"Should US retail sales sink, perhaps gold can make a break of $2,350."
The US retail sales data is due at 1230 GMT later in the day, followed by weekly jobless claims on Thursday and flash purchasing managers' indexes on Friday. Data released last week showed a moderation in the labor market and price pressures.
Philadelphia Fed President Patrick Harker revealed on Monday that he is in the single rate cut camp, but left the door open to changing his view depending on incoming data.
A long list of Fed officials will take to the podium at various venues later in the day, including the Chicago Fed's Austan Goolsbee and the Richmond Fed's Thomas Barkin.
Traders are seeing a 75% probability of an interest rate cut in November, according to the CME Group's FedWatch Tool. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
More central banks plan to add to their gold reserves within a year and more of them expect others to do so as well, due to ongoing macroeconomic and political uncertainty despite high prices for the precious metal, the World Gold Council said in its annual survey.
Among other metals, spot silver fell 0.6% at $29.31 per ounce, platinum rose 0.8% to $971.94 and palladium lost 0.1% to $888.20.



Aswat Asharq Al-Awsat : Gold Drifts Higher as US Rate Cut Optimism Boosts Appeal

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
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Gold Drifts Higher as US Rate Cut Optimism Boosts Appeal

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)

Gold prices nudged higher on Tuesday as comments from Federal Reserve Chair Jerome Powell bolstered the case for a September rate cut, while investors awaited more US economic data for further monetary policy cues.

Spot gold rose 0.1% to $2,423.89 per ounce by 0140 GMT. On Monday, prices hit their highest level since May 20, when bullion scaled a record peak of $2,449.89.

US gold futures were flat at $2,429.90.

"Powell continued to lay the groundwork for upcoming policy easing. A rate cut in September is now fully priced in by markets, which may keep sentiments in gold prices well-supported in the lead-up," said IG market strategist Yeap Jun Ron, Reuters reported.

Powell said on Monday the three US inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.

When interest rates decrease, the allure of non-yielding bullion typically increases.

Investors were awaiting US retail sales data due at 1230 GMT on Tuesday and comments from Fed governors Christopher Waller and Adriana Kugler later this week for further direction.

A subdued retail sales report may underpin gold prices on dovish Fed bets, while a break to a fresh high will mark a continuation of gold's broader upward trend, which may leave the $2,600 level on watch next, Yeap said.

Elsewhere, India's four-week platinum imports from mid-June eclipsed 2023's total as bullion dealers exploited a loophole by registering alloys containing around 90% gold as platinum to avoid higher duties, government and industry officials told Reuters.

Among other metals, spot silver fell 0.9% to $30.72 per ounce and platinum eased 0.4% to $991.40, while palladium rose 0.2% to $951.84.