Platinum experienced a 0.2 per cent dip to $904.27 per ounce, while palladium saw a 1.2 per cent increase, reaching $960.76
Gold prices witnessed a modest increase on Monday, benefiting from a weaker dollar as the metal rebounded slightly from last week’s decline triggered by robust U.S. inflation data. The data had tempered expectations of an early interest rate cut by the Federal Reserve.
As of 0050 GMT, spot gold showed a 0.2 per cent rise, reaching $2,017.77 per ounce, recovering from a 0.5 per cent loss in the previous week. Meanwhile, U.S. gold futures experienced a 0.3 per cent uptick, reaching $2,029.80 per ounce.
The decline in the dollar index by 0.1 per cent played a role in supporting gold prices, making the dollar-denominated metal more attractive to international buyers. Gold had hit a two-month low last week after U.S. consumer prices exceeded expectations. However, it regained some ground later in the week when U.S. retail sales for January fell more than anticipated.
Federal Reserve Bank of Atlanta President Raphael Bostic expressed the need for more data to confirm a genuine decrease in inflation pressures but remained open to potential rate cuts in the coming months. On the other hand, Chicago Fed President Austan Goolsbee warned against delaying rate cuts for too long, even with higher-than-expected consumer price data in January.
Market expectations for a U.S. interest rate cut have shifted from March to June, with a 77% likelihood of a cut in June, according to the CME Fed Watch Tool. Notably, many U.S. markets were closed on Monday due to the President’s Day holiday.
In the precious metals market, spot platinum dipped by 0.2 per cent to $904.27 per ounce, while palladium experienced a 1.2 per cent increase, reaching $960.76. Silver saw a minor decline of 0.2 per cent, settling at $23.35 per ounce.
