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Gold prices inch higher as dollar slips ahead of Fed speak, inflation data

Published 2024-03-25, 01:34 a/m
© Reuters.
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Investing.com-- Gold prices rose Monday, attempting to steady following a recent wobble as dollar strength eased and gold exchange-traded-funds recorded a first inflow ahead of a slew of remarks from Federal Reserve members and key inflation report later this week.  

Spot gold rose 0.2% to $2,169.77 an ounce, while gold futures expiring in April rose 0.6% to $2,172.35 an ounce. 

Gold prices steady as dollar strength fades amid Fed speak

Physical gold ETFs recorded the first weekly inflow of the year, totaling a significant 483,000 ounces, RBC (TSX:RY) said in a recent report. The signs of ETF investor appetite follows comes just days after the Federal Reserve kept its outlook for three rate cuts this year.

Still, the  dollar index reversed gains to fall 0.3% on Monday even as some Fed members signaled that they aren't so sure that three rate cuts are needed this year.  

Atlanta Federal Reserve Bank President Raphael Bostic reiterated Monday that he sees the need for just one rate this week, adding that the strong economy allows the central bank to continues with its cautious approach. 

The slew of Fed speaks this week, which will includes remarks from Fed governor Christopher Waller and chairman Jerome Powell, will be rounded off by the release of PCE price index data- the Fed’s preferred inflation gauge due Friday. 

Other precious metals were a mixed bag on Monday following steep declines in the prior session. Platinum futures rose 1% to $916.50 an ounce, while silver futures were flat at $24.84 an ounce.

Copper prices inch higher 

Among industrial metals, copper prices climbed Monday after steep losses in the prior session. 

Three-month copper futures on the London Metal Exchange rose 0.2% to $8,869 a ton, while one-month U.S. copper futures rose 0.1% to $4.01 a pound.

Copper’s recent rally was driven chiefly by expectations of tighter supplies as major Chinese refiners signaled plans to cut production.

(Ambar Warrick contributed to this report.)

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