Technical posture for gold remains bullish – analyst
India slashes import tax on gold, silver
Focus on US PCE data on Friday
July 23 – Gold prices edged up on Tuesday and were set to break a four-day losing streak, as investors awaited U.S. economic data due later this week for more clarity on the timing of the Federal Reserve’s expected rate cut this year.
Spot gold was up 0.3% at $2,405.09 per ounce at 1810 GMT. U.S. gold futures settled 0.5% higher at $2,407.30.
The market has shifted its focus from U.S. politics to economic data and “hypothesising that we are well on track to start seeing rate cuts in September,” said Bart Melek, head of commodity strategies at TD Securities.
According to a growing majority of economists in a Reuters poll the Fed will cut interest rates twice this year.
Markets are anticipating a 96% chance of a rate cut by the U.S. central bank in September, according to the CME FedWatch Tool.
The focus this week will be on the U.S. gross domestic product report for the second quarter released on Thursday and the latest personal consumption expenditures price index – the Fed’s preferred inflation gauge – due on Friday.
“Anything weaker than expected would be positive, mainly because it would convince the markets that the U.S. central bank is easing monetary policy in September,” Melek said.
Meanwhile, India slashed import duties on gold and silver in a move industry officials said could lift retail demand and help cut smuggling in the world’s second-biggest bullion consumer.
Higher demand for gold from India could boost global prices.
Local gold prices fell about 6% to their lowest level in more than three months after the announcement.
“The overall technical posture for the yellow metal remains bullish. That continues to invite the chart-based speculators to the long side of the market, including doing some perceived bargain hunting when the market dips,” said Jim Wyckoff, senior market analyst at Kitco Metals.
Elsewhere, spot silver fell 0.4% to $29.11, platinum fell 0.2% at $945.01 and palladium gained about 1.8% to $924.
This article was generated from an automated news agency feed without modifications to text.