(Reuters) – Gold prices held steady on Monday, as the market’s focus shifted to upcoming U.S. PCE data for cues on the Federal Reserve’s policy path, while a stronger dollar capped gains.
Spot gold inched up 0.1% at $3,373.49 per ounce, as of 1151 a.m. ET (15:51 GMT), after hitting its highest level since August 11 on Friday. U.S. gold futures for December delivery was flat at $3,418.60.
The dollar gained 0.4% against rival fiat currencies, making bullion priced in the currency more expensive for foreign buyers. [USD/]
“The market is absorbing Powell’s comments from Friday… as we await fresh inputs that might give a better indication of the likelihood of a September rate cut,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
“I think the period of summer doldrums is coming to an end in the weeks ahead. So, I anticipate that the uptrend in gold will re-exert itself.”
Gold prices climbed to a near two-week high on Friday, after Fed Chair Jerome Powell signaled a possible interest rate cut at the U.S. central bank’s meeting next month. Powell said that risks to the job market were rising, but that inflation remained a threat and a decision had yet to be taken.
Markets anticipate a more than 86% chance of a 25-basis point rate cut at the Fed’s September policy meeting, according to the CME FedWatch Tool.
Non-yielding gold thrives in a low-interest-rate environment.
Investors are now awaiting the U.S. Personal Consumption Expenditures data, due on Friday, for further clues on the central bank’s future rate cut path. The data is expected to show core inflation creeping up to its highest since late 2023 at 2.9%.
Elsewhere, spot silver was stable at $38.81 per ounce, following a nearly one-month peak on Friday.
Platinum edged 1.7% lower to $1,338.62 and palladium dropped 2.7% to $1,096.27.
(Reporting by Sarah Qureshi in Bengaluru; Editing by Barbara Lewis and Shailesh Kuber)
