Gold holds just below record as traders wait for rate-path clues
Traders will parse incoming data this week, including activity readings in Europe and Friday’s personal consumption expenditures price index in the US. The Fed’s preferred measure of underlying inflation likely grew at a slower pace last month, which would boost the argument for rate cuts. Additionally, Powell is also due to speak on the economic outlook on Tuesday.
Traders are still pricing in almost two more rate cuts this year, with the outlook for further Fed monetary easing providing a major catalyst in bullion’s 40% surge this year.
Prices have also been supported by haven demand due to concerns over geopolitical conflicts and the impact of US President Donald Trump’s tariffs on the global economy, along with increased central-bank purchases and holdings in exchange-traded funds.
Spot gold was 0.1% higher to $3,688.40 an ounce as of 7:36 a.m. in Singapore. The Bloomberg Dollar Spot Index edged up 0.1%. Silver and platinum were steady, while palladium gained.
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