Gold holds steady as investors focus on US economic data

Gold prices held steady on Tuesday as investors looked forward to a slew of U.S. economic data for clues about the Federal Reserve‘s interest rate outlook.

FUNDAMENTALS

* Spot gold edged up 0.1% to $2,744.51 per ounce by 0014 GMT. Prices hit a record high of $2,758.37 on Wednesday.

* U.S. gold futures were steady at $2,756.70.

* September U.S. job openings and October consumer confidence data, due later in the day, will likely offer more clues about the health of the world’s largest economy. * The Fed will announce its interest rate decision at its two-day meeting starting on Nov. 6. The employment and inflation data, along with the outcome of a closely contested presidential election, will likely influence the Fed decision.
* Markets are pricing in about 98% chance of a 25-basis-point rate cut, according to CME’s FedWatch Tool.
* Lower rates reduce the opportunity cost of holding gold, which is also seen as a safe asset during times of economic and political turmoil.
* Elsewhere, at least 60 people were killed and dozens wounded in Israeli strikes on Lebanon’s eastern Bekaa Valley, two security sources and the mayor of Baalbek told Reuters.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.19% to 891.50 tonnes on Monday.

* On the physical front, Chinese gold consumption dropped 11.2% year-on-year in the first three quarters of 2024 as high prices dented demand for jewellery, the state-backed gold association said.

* Spot silver was little changed at $33.70 per ounce, while palladium rose 0.1% to $1,034.36, platinum fell 0.3% to $1,215.24.

DATA/EVENTS (GMT) 1000 Germany GDP QQ Q3 1400 US Consumer Confidence Oct.