Jan 9 (Reuters) - Gold prices edged higher on Tuesday, supported by a pullback in the dollar after an official U.S. report citing consumers expect lower inflation cemented bets for interest rate cuts from the Federal Reserve. FUNDAMENTALS * Spot gold was up 0.2% at $2,032.39 per ounce, as of 0157 GMT, after hitting a three-week low on Monday. * U.S. gold futures also rose 0.2% to $2,038.30 per ounce. * A New York Federal Reserve report on Monday said consumers expect lower inflation as well as weaker income and spending over the next several years. * Fed Governor Michelle Bowman retreated from her persistently hawkish view, saying she now sees U.S. monetary policy as "sufficiently restrictive" and signalled her willingness to support eventual interest-rate cuts as inflation eases. * Lower interest rates decrease the opportunity cost of holding non-yielding bullion. * The dollar index weakened 0.1%, making bullion more attractive for other currency holders. * Earlier this month, a stronger-than-expected jobs data paired with the latest Fed minutes that noted an uncertainty over timings of rate cuts, tempered some sentiments for an early interest rate cut in the U.S.. * Market participants are pricing in an about 62% chance of a rate cut by the U.S. central bank in March, down from a nearly 90% probability seen before the New Year, according to the CME FedWatch tool. * Investors now await Thursday's U.S. consumer price inflation report for further clarity on the scale and depth of Fed's rate cut. * Asia's stock indexes were mostly higher on Tuesday after a tech-led surge on Wall Street. * Meanwhile, core inflation in Japan's capital slowed for the second straight month in December, taking some pressure off the central bank to rush into exiting ultra-loose monetary policy. * Spot silver rose 0.1% to $23.11 per ounce, while platinum climbed 0.5% to $950.08, and palladium gained 0.5% to $1,002.76. DATA/EVENTS (GMT) 0700 Germany Industrial Output Nov 1000 Euro Zone Unemployment Rate Nov 1330 US International Trade Nov (Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips)
Delayed 11:45:08 2024-06-03 am EDT | 5-day change | 1st Jan Change | ||
2,343 USD | +0.72% | +0.39% | +13.59% |
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Stocks mentioned in the article
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2,798 PTS | +0.92% | +1.57% | - | ||
2,342 USD | +0.71% | +0.39% | - | ||
1,498 PTS | +0.76% | +1.07% | - | ||
923.9 USD | +1.08% | -4.82% | - | ||
30.46 USD | +0.24% | +0.51% | - | ||
1.279 USD | +0.38% | +0.79% | - | ||
1.089 USD | +0.34% | +0.71% | - | ||
0.7336 USD | -0.02% | +0.78% | - | ||
0.6682 USD | +0.41% | +1.23% | - | ||
0.618 USD | +0.52% | +1.41% | - | ||
0.012 USD | +0.42% | 0.00% | - | ||
- PTS | -.--% | +1.02% | - | ||
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