Gold prices rose Tuesday, while Treasury yields fell, with market participants awaiting U.S. data and comments from Federal Reserve officials for more clarity on the central bank’s roadmap for cuts of interest rates.
Spot gold was up 0.2% at $2,323.97 per ounce at 0326 GMT. U.S. gold futures rose 0.4% to $2,339.00.
Benchmark 10-year Treasury yields fell, making gold more attractive, while the dollar remained stable.
“The fact that the direction of gold has been back and forth over the last four days without really going anywhere significantly tells me that the market is waiting for something to wake it out of its doldrums,” said Matt Simpson, senior analyst at City Index .
“If US retail sales were to decline, perhaps gold could take a breather at $2,350.”
US retail sales data is due at 1230 GMT, followed by weekly jobless claims on Thursday and flash purchasing managers’ indices on Friday. Data released last week showed moderation in labor market and pricing pressures.
Philadelphia Fed President Patrick Harker revealed Monday that he is in the one-size-fits-all camp, but left the door open to changing his view based on incoming data.
A long list of Fed officials will take the podium at various venues throughout the day, including Austan Goolsbee of the Chicago Fed and Thomas Barkin of the Richmond Fed.
Traders see a 76% chance of an interest rate cut in November, according to CME Group’s FedWatch tool. Lower interest rates reduce the opportunity cost of holding unprofitable bullion.
Among other metals, spot silver was unchanged at $29.49 an ounce, platinum rose 1.2% to $976.15 and palladium gained 0.7% to 894.64 dollars.
