Gold holds steady as traders look to inflation data

GOLD PRICES held steady on Tuesday, with key inflation reading and comments from US Federal Reserve officials on investors’ radar this week.

Spot gold was little changed at $2,031.77 per ounce as of 13:52 p.m. ET (1852 GMT).

US gold futures settled 0.3% higher at $2,044.10.

The dollar index was subdued, making bullion more attractive for overseas buyers.

“A slight uptick in inflation data will pressure the gold market but it is well supported at the $2,000 level by central bank buying. It is unlikely Fed officials will change their stance until more data,” said Phillip Streible, chief market strategist at Blue Line Futures, in Chicago. “Gold will have a record run in the fourth quarter when rate cuts materialize.”

At least ten Fed officials are due to speak this week, while the core personal consumption expenditures price index, the Fed’s preferred inflation gauge, is due on Thursday.

Data showed US durable goods orders posted the largest drop in nearly four years in January.

Gold prices were also supported as China’s middle-class attempts “to preserve their dwindling fortunes caused by the property market crisis and a prolonged stock market sell-off,” Ole Hansen, Saxo Bank’s head of commodity strategy, wrote in a note.

Top bullion consumer China’s net gold imports via Hong Kong in January hit the highest since mid-2018, official data showed.

Spot platinum rose 1.3% to $891.03 per ounce, but was down around 10% so far this year. Palladium fell 0.7% to $944.32 and was down 14% for the year. Silver was flat at $22.50. —