Gold prices tepid as traders seek more US data

Gold prices traded flat in early Asian trade hours on Thursday, within close range of record-high levels on a broadly weaker dollar, as traders awaited more economic data that could steer hopes for a mid-year rate cut by the U.S. Federal Reserve.

FUNDAMENTALS

* Spot gold was flat at $2,173.89 per ounce, as of 0147 GMT. U.S. gold futures dipped 0.1% to $2,178.20.

* The Fed is expected to hold rates steady at its policy meeting next week, but the focus will be on the ‘dot plot’ projections. The U.S. central bank in its December meeting pencilled three-quarter-point rate cuts for 2024.

* Investors will look at the U.S. retail sales data, the producer prices index (PPI) report and jobless claims due later in the day to gauge the U.S. economy’s health and if it will deter the Fed from cutting rates in June.

* Traders see a 67% chance of a June rate cut, according to LSEG’s interest rate probability app, down from 72% before data showed U.S. consumer prices increased slightly above market expectations in February, suggesting some stickiness in inflation. Chances for a July rate cut stand at 83%. * The U.S. dollar index steadied after reversing all gains that were made on the back of a strong inflation data on Wednesday. Meanwhile, 10-year Treasury yields were steady at 4.1899% after rising by 4.5 bps in the previous session. [USD/] [US/] * SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21% to 816.86 tonnes on Wednesday from 815.13 tonnes on Tuesday.

* Spot platinum rose 0.4% to $942.05 per ounce, palladium gained 0.1% to $1,060.25 and silver was steady at $25.05, after hitting a more than four-month high earlier in the session.