Gold Steadies Near Three-Month High Ahead of US Inflation Data
· Business · Investing.com India, Economic Times, Investing.com
Gold prices held steady on Tuesday after touching an over three-month peak, as investors positioned themselves ahead of the US inflation report and a speech by Fed governor nominee Kevin Warsh. Spot gold held near $1,860 an ounce in early trade, with the metal having rallied about 6% over the past three weeks on expectations that the US Federal Reserve will slow the pace of interest rate hikes. Traders are watching the US consumer price index (CPI) data due later this week for signals on the Fed's tightening path. A weaker-than-expected inflation print could reinforce bets on a less aggressive rate hike cycle, which typically boosts gold by reducing the opportunity cost of holding the non-yielding asset. The Warsh speech, meanwhile, is being parsed for any clues on the Fed's reaction function under a new governor.
Why it matters
Gold is a key import for India, the world's second-largest consumer, and a weaker dollar or slowing US rate hikes directly feed into domestic gold and jewellery prices. Any signal on the Fed's trajectory also influences the rupee, bond yields, and equity sentiment across Indian markets.
Read the original report — Investing.com India
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