Ammon News – Gold prices edged down on Monday as a steady US dollar made bullion less affordable for overseas buyers, while investors awaited further clues on when the US Federal Reserve would deliver its first interest rate cut.
Spot gold fell 0.3 per cent to US$2,328.20 per ounce as at 0112 GMT. US gold futures were down 0.3 per cent at US$2,339.70 per ounce.
The US dollar edged up 0.1 per cent against its rivals. A stronger US dollar makes greenback-priced gold more expensive for buyers holding other currencies.
The US personal consumption expenditures price index increased 0.3 per cent last month, in line with forecasts, a development that is unlikely to change expectations that the Fed will hold off cutting interest rates until September.
Fed policymakers sifting through the latest inflation data will find little to fuel a sense of urgency to cut rates, but also nothing to rule out the likelihood of rate reductions starting later this year.
Lower interest rates boost the appeal of holding non-yielding bullion.
China’s gold consumption in the first quarter climbed nearly 6 per cent from a year earlier, the country’s Gold Association said.
Physical gold dealers in India charged premiums last week for the first time in nearly two months as a pullback in domestic prices lured buyers, while premiums in top consumer China slipped.
Impala Platinum said the restructuring of its South African operations could lead to 3,900 job losses as it battles low metal prices.
China’s industrial profits fell in March and slowed gains for the quarter compared to the first two months, raising doubts about the strength of a recovery for the world’s second-biggest economy.
Spot silver fell 0.2 per cent to US$27.12 per ounce, platinum was down 0.1 per cent at US$915.10, while palladium lost 0.8 per cent to US$946.75.
Business Times
