Gold prices fell on Tuesday as investors await key U.S. inflation data due this week that could offer fresh clues about how soon the Federal Reserve may cut interest rates.
FUNDAMENTALS
* Spot gold was down 0.1% at $2,329.64 per ounce as of 0114 GMT. U.S. gold futures also fell 0.1% to $2,342.00.
* San Francisco Federal Reserve President Mary Daly said Monday that she doesn’t think the U.S. central bank needs to cut rates before policymakers are confident that inflation is headed toward 2%.
* Traders await the report on the U.S. personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation, due on Friday for more guidance on the timing and size of the credit cuts. taxi.
* Investors also await comments from Fed officials speaking this week, including Fed Governors Lisa Cook and Michelle Bowman.
* Traders are currently pricing in about a 68% chance of a Fed rate cut in September, according to the CME FedWatch Tool.
* Lower interest rates reduce the opportunity cost of holding unprofitable bullion.
* In big-consumer China, retailers face a daunting near-term future after a disappointing mid-year online shopping festival, which also clouded the recovery prospects of the world’s second-largest economy.
* Spot palladium prices in London hit a one-month high and briefly surpassed the key $1,000 per troy ounce level in volatile trading last week, as some investors covered their short positions and the market was tight for the nearby physical offering.
* Spot silver fell 0.3% to $29.53 an ounce, platinum rose 0.7% to $1,001.25 and palladium gained nearly 1% to $987.91 .
DATA/EVENTS (GMT) 0500 Japan Chain Store Sales YY May 1400 United States Consumer Confidence June (Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Sherry Jacob-Phillips)
