Gold prices recover as softer US dollar lifts appeal
GOLD prices inched higher on Monday (Feb 19), lifted by a softer US dollar, as the bullion partially recovered from a slump last week on hot United States inflation data that cooled prospects of early rate cuts by the Federal Reserve.
Spot gold was up 0.2 per cent at US$2,017.77 per ounce, as at 0050 GMT. Bullion lost 0.5 per cent last week.
US gold futures edged 0.3 per cent higher to US$2,029.80 per ounce.
The US dollar index was down 0.1 per cent, making greenback-priced bullion more affordable to overseas buyers.
Last week, bullion fell to a two-month low after data showed consumer prices rose more than expected last month, but it recouped some of its losses later in the week after US retail sales fell more than expected in January.
Federal Reserve Bank of Atlanta president Raphael Bostic said that while he needs more data to convince him inflation pressures are truly falling, he’s open to lowering rates at some point in the next few months.
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Chicago Fed president Austan Goolsbee cautioned against delaying rate cuts for too long even after data showed consumer prices rose more than expected in January.
Traders have pushed back their expectations of a US interest rate cut from March to June. Markets are currently pricing a 77 per cent chance of a cut in June, according to the CME Fed Watch Tool.
Most US markets will remain closed on Monday for the President’s Day holiday.
Spot platinum fell 0.2 per cent at US$904.27 per ounce, palladium rose 1.2 per cent at US$960.76, while silver was down 0.2 per cent at US$23.35 per ounce. REUTERS
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