© Reuters. Gold bullion in a photo from Reuters archive.
(Reuters) – It stabilized on Wednesday as traders awaited comments from a large number of Federal Reserve officials this week to assess how quickly the bank might start cutting interest rates.
The price stabilized at $2035.12 per ounce by 0131 GMT, after rising more than 0.5 percent in the previous session.
There was also no change in US gold futures and settled at $2051.20 per ounce.
Federal Reserve officials said on Tuesday that if the US economy performs according to expectations, this could pave the way for lowering interest rates. But the battle to contain inflation is “far from over.”
The central bank may take time before it decides to lower interest rates, something its Chairman, Jerome Powell, also indicated in an interview broadcast on Sunday.
Higher interest rates would increase the opportunity cost of holding bullion, reducing its attractiveness among other assets.
Traders currently expect a 19.5 percent chance of a rate cut in March, according to CME Group’s Fed Watch service, compared to a 68.1 percent chance at the beginning of the year.
The market’s focus will be on comments from at least five other Federal Reserve officials this week, then later turn to the inflation report scheduled for release next Tuesday for more evidence about the US central bank’s policy.
Yields on the 10-year benchmark fell, making non-yielding gold more attractive to holders of other currencies.
As for other precious metals, it rose 0.1 percent to $22.41 per ounce, and the price of platinum stabilized at $903.99, while it fell 0.1 percent to $949.83.
(Prepared by Mahmoud Reda Murad for the Arabic Bulletin)
2024-02-07 04:02:00
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