By Rahul Paswan
(Reuters) – Gold steadied on Wednesday while investors awaited U.S. data for clues on potential interest rate cuts by the Federal Reserve, though a slight uptick in the dollar limited any upside.
Spot gold was mostly flat at $2,312.61 per ounce at 1804 GMT. U.S. gold futures for June delivery settled 0.1% lower at $2,322.3 per ounce.
The dollar edged up 0.1% on renewed bets of rate cuts this year. A stronger dollar makes gold less attractive for foreign currency holders. [USD/]
“Market is likely to wait for a catalyst for additional upside, whereas the downside does appear to be capped by the limited participation from money managers,” said Daniel Ghali, commodity strategist at TD Securities.
Federal Reserve Bank of Boston President Susan Collins expressed confidence that the current setting of monetary policy will slow the economy in the way she believes will be necessary to get inflation back to the Fed’s 2% target.
Investors are now looking to the University of Michigan’s consumer sentiment reading on Friday and comments from a slew of Fed officials this week. U.S. consumer price index data is due on May 15.
After recent weak U.S. jobs data, money markets are pricing in two Fed rate cuts this year and around 40 basis points of monetary easing.
U.S. job growth slowed more than expected in April and the increase in annual wages fell below 4.0% for the first time in nearly three years.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Meanwhile, the European Central Bank has all but promised a rate cut on June 6 and worries that a delay in monetary policy easing by the Fed could also force it to take its time.
Spot silver rose 0.32% to $27.356 per ounce. Platinum edged up 0.03% to $976.30 per ounce, and palladium dipped 1.9% to $953.13.
(Reporting by Rahul Paswan in Bengaluru; Editing by Shilpi Majumdar and Mark Potter)
