Gold prices remained steady on Tuesday as investors adopted a cautious stance ahead of U.S. economic data that could provide guidance on the Federal Reserve's interest rate path.
Spot gold was almost unchanged at $2,636.50 an ounce, at 0156 GMT, after falling 1% on Monday. US gold futures were flat at $2,659.00.
The dollar has risen, making bullion more expensive for foreign buyers. [USD/]
Key U.S. data this week includes job openings expected later in the day, the ADP jobs report on Wednesday, and the payrolls report on Friday.
“It looks like we will oscillate in one place until a new trigger emerges… The Fed's rate cut forecasts are likely to define what happens next,” said Ilya Spivak, head of macroeconomics. worldwide at Tastylive.
“A further 25 basis point cut this month seems likely and appears largely priced in. The big question is the possibility of further easing in 2025.”
On Monday, Fed Governor Christopher Waller said inflation was expected to fall further to 2% and that he was inclined “at this time” to support another interest rate cut later in the year. month.
“I think it will be appropriate to continue to move toward a more neutral policy over time,” said John Williams, president of the Fed Bank of New York.
These comments led investors to raise expectations for a rate cut at the Dec. 17-18 Fed meeting to nearly 75%.
Gold tends to thrive in a low interest rate environment and during periods of geopolitical unrest.
On the geopolitical level, the Israeli army targeted dozens of Hezbollah positions in Lebanon on Monday.
Elsewhere, silver gained 0.1% to $30.51 an ounce, platinum fell 0.3% to $944.35 and palladium lost 0.2% to $979.72.
