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Gold Prices Cling To 2-Week High Ahead Of U.S. Inflation Data, Fed Minutes

Published 04/10/2019, 07:15 AM
© Reuters.
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Investing.com - Gold prices were little changed near the prior session's two-week high on Wednesday, as market players looked ahead to the release of U.S. inflation data as well as minutes from the Federal Reserve’s latest meeting.

Spot gold was down $1.18, or about 0.1%, at $1,302.91 per ounce by 7:15AM ET (11:15 GMT), after going as high as $1,306.24 on Tuesday, the most since March 28.

Comex gold futures shed $1.45, or 0.1%, to $1,306.85 a troy ounce.

The Commerce Department will publish inflation figures for March at 8:30AM ET (12:30 GMT).

Consumer prices are expected to have risen 0.3% last month, according to estimates. Excluding the cost of food and fuel, core inflation prices are forecast to have risen 0.2% last month.

The Fed will then release the minutes of its most recent policy meeting later in the session. The U.S. central bank all but swore off raising interest rates again this year at the conclusion of its March 20 meeting and indicated it intends to end the reduction of its massive $4.2 trillion balance sheet by September.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 96.56, not far from Tuesday's two-week low of 96.46.

Meanwhile, U.S. Treasury prices inched higher, pushing yields slightly lower across the curve, with the benchmark 10-year yield slipping to 2.49%.

Traders will also monitor headlines out of Europe, with the European Central Bank holding its policy meeting and as British Prime Minister Theresa May seeks a second delay to Brexit at an emergency summit in Brussels.

Gold prices rallied on Tuesday after the International Monetary Fund lowered its global growth outlook and as President Donald Trump threatened to impose tariffs on $11 billion of European goods.

The precious metal is used as a safe investment during times of political and financial uncertainty.

Elsewhere, silver futures were flat at $15.21 a troy ounce.

In other metals trading, palladium futures declined 0.3% to $1,359.30 an ounce, while platinum dipped 0.45% to $895.30 an ounce. The metal had touched its highest since May 2018 at $914.74 on Monday.

-- Reuters contributed to this report

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