Spot Gold eases as investors look for more Fed rate clues
Spot Gold was a notch weaker on Monday, with market focus setting on more macro data out of the US this week, including the key Non-Farm Payrolls report.
The latest US PCE inflation figures still supported expectations that the Federal Reserve would likely cut interest rates later in 2024.
Data showed last Friday that annual core PCE inflation had remained stable at 2.8% in April, or the lowest rate since March 2021.
In month-over-month terms, core PCE prices went up 0.2% in April, following a 0.3% rise in March.
Markets are now pricing in about a 54% chance of a Fed rate cut occurring in September, compared with 49% before the PCE data release, according to the CME FedWatch tool.
“Gold is getting a little bit of support after the marginally softer than expected Personal Consumption Expenditures (PCE) numbers supported the notion that the Fed can cut rates this year,” Kyle Rodda, financial market analyst at Capital.com, was quoted as saying by Reuters.
As of 7:11 GMT on Monday Spot Gold was edging down 0.10% to trade at $2,324.91 per troy ounce.
The commodity was hovering above a three-week low of $2,314.79.
Gold Futures for delivery in August were inching down 0.01% on the day to trade at $2,345.50 per troy ounce.
Elsewhere, Silver Futures for delivery in July were down 0.24% to trade at $30.367 per troy ounce.
The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching up 0.03% to 104.507 on Monday.
