Gold lacks momentum as investors brace for Fed minutes
Fed's September meeting minutes due at 1800 GMT
Gold could get nice bump if U.S. CPI comes in soft - analyst
Updates prices and adds graphics, as of 0758 GMT
By Daksh Grover and Ashitha Shivaprasad
Oct 9 (Reuters) -Gold prices eased on Wednesday, weighed down by a stronger dollar, as investors awaited minutes from the Federal Reserve's latest policy meeting for insights into the U.S. central bank's interest rate trajectory.
Spot gold XAU= was down 0.4% at $2,610.50 per ounce, as of 0758 GMT. Prices scaled a record high of $2,685.42 on Sept. 26.
U.S. gold futures GCcv1 edged 0.2% lower to $2,629.60.
The dollar index =USD hit an over seven-week high, making bullion less attractive to other currency holders. USD/
"Gold prices seem to be seeing a much-needed retracement lower. But I suspect buyers are lurking and keen to snap up a bargain - so I'm not expecting a significant sell-off," said Matt Simpson, senior analyst at City Index.
Minutes from the Fed's September policy meeting are due at 1800 GMT. Traders have also buckled up for the U.S. Consumer Price Index (CPI) report on Thursday and the Producer Price Index (PPI) data on Friday.
"Gold prices could get a nice bump if CPI comes in soft, but whether it can reach a new high this year requires U.S. data in general to underperform," Simpson said.
The CME FedWatch tool shows that markets no longer expect a 50-basis-point cut next month, following last week's strong jobs report. They now see an 86% chance for a 25-basis-point reduction.
Boston Fed President Susan Collins said on Tuesday weakening inflation trends make it likely the U.S. central bank can implement further rate cuts.
Zero-yield bullion tends to thrive in a low interest rate environment.
Gold exchange-traded funds saw a fifth consecutive month of inflows in September as North America-listed funds added to their holdings, the World Gold Council said.
Spot silver XAG= lost 0.7% to $30.49 per ounce. Platinum XPT= inched 0.1% higher to $950.83 and palladium XPD= shed 0.4% to $1,017.49.
Spot gold price in USD per oz https://reut.rs/4eyUmiA
Reporting by Ashitha Shivaprasad and Daksh Grover in Bengaluru; Editing by Sherry Jacob-Phillips and Subhranshu Sahu
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
