Mumbai, 27 Jun (Commoditiescontrol): Gold prices remained stable on Thursday after hitting a two-week low in the previous session. The dollar and Treasury yields held firm ahead of a critical inflation reading due later this week. Spot gold was unchanged at $2,298.88 per ounce, maintaining its lowest level since June 10. U.S. gold futures declined by 0.2% to $2,309.60.
The dollar remained near a two-month high, making gold more expensive for holders of other currencies, while benchmark 10-year yields inched higher.
Traders are closely watching the U.S. first-quarter gross domestic product (GDP) estimates set for release on Thursday and the personal consumption expenditures (PCE) price index report on Friday for further cues on the potential timing and magnitude of rate cuts this year.
Recent data showed that sales of new U.S. single-family homes fell to a six-month low in May due to rising mortgage rates, indicating a faltering housing market recovery.
On Wednesday, U.S. Federal Reserve Governor Michelle Bowman reiterated her view that inflation will decline with the policy rate held steady and that rate cuts will "eventually" be appropriate if inflation sustainably moves toward 2%. Federal Reserve Governor Lisa Cook expressed similar sentiments on Tuesday, stating that the central bank is on track for a rate cut if the economy performs as expected, though she did not specify when this might occur.
Lower interest rates generally reduce the opportunity cost of holding non-yielding assets like gold.
Market analysts suggest that spot gold may continue to fall into the $2,275-$2,286 per ounce range as it follows a steady downtrend.
In other metals, spot silver rose by 0.1% to $28.78 per ounce, platinum increased by 0.1% to $1,011.65, and palladium declined by 0.6% to $922.94.
Meanwhile, the European Central Bank (ECB) indicated that it could gradually reduce interest rates if inflation decreases as anticipated, according to comments from two ECB policymakers on Wednesday.
As the market awaits further economic data, gold prices are expected to fluctuate based on new developments in inflation and monetary policy.
(By Commoditiescontrol Bureau: 09820130172)
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