USA Dollar

Gold edges higher on safe-haven demand, weaker dollar – 2024-02-21


Feb 22 (Reuters) – Gold prices edged up on Thursday
supported by safe-haven demand amid rising geopolitical tensions
in the Middle East and a softer dollar, while minutes of the
latest U.S. Federal Reserve meeting dampened hopes for an early
interest rate cut.

FUNDAMENTALS

* Spot gold was up 0.1% at $2,026.9 per ounce, as of
0100 GMT. U.S. gold futures edged 0.1% up at $2,035.8
per ounce.

* Israel intensified its bombardment of Rafah in Gaza’s
south, as the ruined Palestinian enclave’s health ministry
announced 29,313 deaths in the war so far.

* The dollar index was down 0.1%, making
greenback-priced bullion more affordable to overseas buyers.

* January inflation data, with consumer prices rising faster
than anticipated, complicate upcoming Fed rate decisions,
Richmond Fed president Thomas Barkin said.

* The bulk of policymakers at the Fed’s last meeting were
concerned about the risks of cutting interest rates too soon,
according to minutes of the Jan. 30-31 session.

* Markets are currently pricing in a 70% chance of a cut in
June, according to the CME Fed Watch Tool. Lower interest rates
boost the appeal of holding non-yielding bullion.

* Copper and gold are expected to see the largest immediate
price boost in the commodities sector from potential U.S.
Federal Reserve interest rate cuts, analysts at Goldman Sachs
said.

* Spot platinum was up 0.2% at $885.08 per ounce,
palladium rose 0.5% at $954.68, while silver was
up 0.2% at $22.90 per ounce.
DATA/EVENTS (GMT)
0500 Japan Chain Store Sales YY Jan
0745 France Business Climate Mfg, Overall Feb
0815 France HCOB Mfg, Serv, Comp Flash PMIs Feb
0830 Germany HCOB Mfg, Serv, Comp Flash PMIs Feb
0900 EU HCOB Mfg, Serv, Comp Flash PMIs Feb
0930 UK Flash Comp, Mfg, Serv PMIs Feb
1000 EU HICP Final MM, YY Jan
1330 US Initial Jobless Clm Weekly
1445 US S&P Global Mfg, Svcs, Comp Flash PMIs Feb
1500 US Existing Home Sales Jan
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing
by Rashmi Aich)



Source link

Leave a Response