Gold drifts higher on softer dollar, rate-cut bets
July 22 (Reuters) -Gold prices edged higher on Monday, aided by a softer dollar and expectations of a U.S. interest rate cut, while spotlight shifted to economic data for further insights into the Federal Reserve's monetary policy path.
FUNDAMENTALS
* Spot gold XAU= was up 0.3% at $2,408.19 per ounce, as of 0017 GMT. Prices scaled an all-time high of $2,483.60 last week.
* U.S. gold futures GCcv1 rose 0.5% to $2,410.40.
* The dollar index .DXY was down 0.1%. A weaker dollar makes bullion more attractive to buyers holding other currencies. USD/
* Investors have locked onto the U.S. central bank's Sept. 17-18 meeting for the start of rate cuts that Fed Chair Jerome Powell has said will represent a "consequential" change in policy from the pandemic-era battle against inflation to a phase of easing monetary policy. FEDWATCH
* Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
* Market focus will be on Friday's U.S. PCE price index data. Other releases include existing home sales, July S&P Global flash PMIs, advance second-quarter GDP, and weekly jobless claims.
* Asian physical gold demand was sluggish last week, reflecting customers' reluctance to make new purchases despite deep discounts, who were instead seen capitalizing on record-high bullion prices. GOL/AS
* On the political front, U.S. President Joe Biden abandoned his floundering reelection bid on Sunday under growing pressure from his fellow Democrats and endorsed Vice President Kamala Harris to replace him as the party's candidate to face Republican Donald Trump in the November election.
* Spot silver XAG= gained 0.3% to $29.34 per ounce, platinum XPT= firmed 0.9% at $970.65 and palladium XPD= rose 1.6% to $920.83.
DATA/EVENTS (GMT)
0115 China Loan Prime Rate 1Y July
0115 China Loan Prime Rate 5Y July
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich
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.
