Gold prices flat as traders await fresh catalysts

Gold was flat on Tuesday as investors await fresh insights into the Federal Reserve‘s stance on U.S. interest rate reductions for further direction on prices.

FUNDAMENTALS

* Spot gold held its ground at $2,648.89 per ounce by 0022 GMT. U.S. gold futures steadied at $2,665.50.

* Fed Governor Christopher Waller on Monday called for “more caution” on interest rate cuts ahead. He added that the economy is in a good place.

* Fed Bank of Minneapolis President Neel Kashkari said more rate reductions likely lie ahead for the central bank as the 2% inflation target looms into sight.

* Bets on a 25-basis-point reduction at the Fed’s November meeting stood at 86.5%, according to the CME Group‘s FedWatch tool. Lower interest rates raise the appeal of holding zero-yield bullion. * Investors will keep a tab on U.S. retail sales, industrial production data and weekly jobless claims due later in the week. * Central banks remain keen buyers of gold to diversify their reserves for financial or strategic reasons, representatives of three central banks told the London Bullion Market Association’s annual conference in Miami.

* On the geopolitical front, Israel expanded its targets in its war with Hezbollah militants in Lebanon, killing at least 21 people in an airstrike in the north, health officials said.

* Spot silver was flat at $31.19 per ounce. Platinum held steady at $992.97 and palladium slipped 0.3% to $1,026.43.

* Top metals consumer China’s export growth slowed sharply in September while imports also unexpectedly decelerated, undershooting forecasts by big margins.

DATA/EVENTS (GMT)

0600 UK Claimant Count Unem Chng Sept

0600 UK ILO Unemployment Rate Aug

0600 UK HMRC Payrolls Change Sept

0745 France CPI (EU Norm) Final MM Sept

0745 France CPI (EU Norm) Final YY Sept

0745 France CPI YY NSA Sept

0745 France CPI MM NSA Sept

0905 Germany ZEW Economic Sentiment Oct

0905 Germany ZEW Current Conditions Oct

1000 EU Reserve Assets Total Sept