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GOLD prices were steady on Wednesday (May 8), while market participants awaited fresh cues from US Federal Reserve officials for further clarity on the timeline for potential interest rate cuts.
Spot gold held its ground at US$2,314.29 per ounce, as at 0037 GMT. US gold futures lost 0.1 per cent to US$2,322.90.
Lower rates raise the allure of holding non-yielding gold. Markets are currently seeing a 65 per cent chance of a US rate cut in September, as per CME’s FedWatch Tool.
Meanwhile, Minneapolis Fed president Neel Kashkari said on Tuesday that stalled inflation buoyed in part by housing market strength means the US central bank will need to hold borrowing costs steady for an “extended period”, and possibly all year.
China’s central bank added 60,000 troy ounces of bullion to its reserves in April, official data showed on Tuesday, extending the period of consecutive purchases to 18 months.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund fell 0.21 per cent to 830.47 tonnes on Tuesday from 832.19 tonnes on Monday.
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The US said negotiations on a Gaza ceasefire should be able to close the gaps between Israel and Hamas while Israeli forces seized the main border crossing in Rafah on Tuesday.
A key measure of world indebtedness has resumed its climb as global debt hit a record high of US$315 trillion in the first quarter of the year, fuelled by borrowing in emerging markets, the United States and Japan, a study showed.
Spot silver fell 0.1 per cent to US$27.25 per ounce, platinum gained 0.5 per cent to US$981.10 and palladium rose 0.4 per cent to US$974.59. REUTERS
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