Gold was steady as markets awaited a crucial US inflation report this week, which may firm expectations for when the Federal Reserve will start to loosen monetary policy.
CPI data due Thursday is likely to show that disinflation continues to be very slow in supercore categories, which exclude food, energy and housing prices, according to Bloomberg Economics. That could dampen the outlook for US interest-rate cuts, which around two-thirds of swaps traders see as soon as March. Higher borrowing costs are typically negative for non-interest bearing bullion.
The precious metal has remained above $2,000 an ounce since Dec. 13 on signs policymakers are preparing to start cutting rates early in 2024. It has lost steam in recent weeks amid increasing uncertainty over the Fed's timing, as ongoing resilient economic fundamentals have fueled speculation monetary easing may be delayed.
Gold was flat at $2,030.87 an ounce as of 8:06 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady, after rising 0.3% on Tuesday. Silver was little changed, while platinum and palladium edged higher.
Source : Bloomberg
