Gold prices edged higher on Wednesday as the U.S. dollar fell as investors focused on the minutes of the Federal Reserve’s latest policy meeting for fresh signals on the timing of the central bank’s interest rate cuts.
FUNDAMENTALS
* Spot gold rose 0.1% to $2,331.41 an ounce, by 0026 GMT. U.S. gold futures gained 0.3% to $2,340.50.
* The U.S. dollar fell, making bullion cheaper for buyers holding other currencies.
* Fed Chairman Jerome Powell said Tuesday that the United States was back on track to disinflation, but policymakers needed more data before cutting interest rates to verify that recent weaker inflation readings were an accurate picture of the economy.
* Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
* Traders currently price in a 67% chance of a Fed rate cut in September, according to the CME’s FedWatch tool.
* Data showed U.S. job openings rose in May after posting significant declines in the previous two months, but the trend remained consistent with easing labor market conditions.
* The minutes of the Fed’s June meeting are due at 1800 GMT. Other employment data are due throughout the week, including ADP employment, weekly jobless claims due later in the day and nonfarm payrolls on Friday.
* Spot silver rose 0.2% to $29.56, platinum rose 0.6% to $996.64 and palladium lost 0.8% to $978.80.
* South African company Impala Platinum reported a strike on Tuesday at part of its recently acquired Bafokeng operations in Rustenburg, which it said mainly involved contractors requesting permanent positions.
DATA/EVENTS (GMT)
0145 China Caixin Services PMI June
0750 France HCOB Serv, Comp PMIs June
0755 Germany HCOB Services PMI June
0755 Germany HCOB Comp Final PMI June
0800 UE HCOB Services, Comp Final PMIs June
0830 Royaume-Uni S&P Global PMI : Comp – Output June
0830 UK Reserve Assets Total June
1230 American International Trade May
1230 US Initial Jobless Clm Weekly
1345 US S&P Global Comp, Svcs Final PMis Juin
1400 US Factory Orders MM May
1400 US ISM N-Mfg PMI Juin
1800 The US Federal Open Market Committee publishes the minutes of its meeting of June 11 and 12
