Gold price falls as bets on US interest rate cut fade

Gold price falls as bets on US interest rate cut fade
Gold price falls as bets on US interest rate cut fade

Gold prices fell on Wednesday as traders reduced their bets on rate cuts by the US Federal Reserve this year following remarks from some policymakers, as the market awaits key US inflation data due later. late in the week.

FUNDAMENTALS

* Spot gold was down 0.1% at $2,357.70 an ounce, by 0059 GMT, US gold futures were up 0.1% at 2,358.30 dollars.

* Minneapolis Federal Reserve President Neel Kashkari said in an interview with CNBC that the US central bank should wait for significant progress on inflation before cutting interest rates.

* Investors are now awaiting the reading of the April Personal Consumption Expenditures (PCE) Price Index, the US central bank’s preferred inflation gauge, which is due to be released on Friday.

* Trader bets have signaled growing skepticism that the Fed will cut rates more than once in 2024, currently putting the chance of a rate cut by November at around 60%, according to the CME FedWatch tool.

* Bullion is known to be a hedge against inflation, but higher rates increase the opportunity cost of holding gold without a yield.

* The Israeli army denied striking a tent camp west of Rafah after Gaza health authorities said Israeli tank fire killed at least 21 people, in an area Israel designated as civil evacuation zone.

* Gold is used as a hedge against inflation and economic and geopolitical uncertainties.

* Shareholders of South African precious metals producer Sibanye Stillwater have voted in favor of a resolution to convert bonds issued last year worth $500 million into shares.

* BHP is working to find common ground with Anglo American in discussions over its takeover offer, without further concessions as the deadline approaches for the world’s largest mining operator to submit a binding offer, according to five sources.

* Spot silver fell 0.5% to $31.95 an ounce, platinum fell 0.9% to $1,054.10 and palladium gained 0.1% to 973.47 dollars.

DATA/EVENTS (GMT) 1200 Germany CPI Prelim YY May 1200 Germany HICP Prelim YY May 1800 US Federal Reserve publishes Beige Book

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