Gold is flat as traders await US inflation data. Gold prices remained steady on Monday as cautious investors anticipated this week’s U.S. inflation data, which might affect the Federal Reserve’s monetary policy.
Gold was flat at $2,016.74 per ounce at 0148 GMT. At $2,025.60, U.S. gold futures were steady.
U.S. consumer price index (CPI) data is due Wednesday.
On Friday, stronger-than-expected U.S. payroll data dampened Fed rate drop forecasts.
The U.S. banking sector and debt ceiling also interest traders.
On Sunday, Treasury Secretary Janet Yellen warned that Congress’s failure to raise the debt ceiling might cause a “constitutional crisis.”
KCM Trade’s chief market analyst Tim Waterer said sluggish inflation would hurt the currency and boost gold owing to reduced Fed interest rate forecasts.
Waterer claimed that if the U.S. economy weakens, gold would be one of the “prime beneficiaries,” and prices might rise to $2,100 sooner rather than later.
Zero-yielding bullion is popular due to economic instability and low rates.
At the end of April, China had 66.76 million fine troy ounces of gold, up from 66.50 million in March.
At $25.59 per ounce, silver lost 0.2%.
Palladium rose 0.8% to $1,502.75, while platinum held at $1,059.32.
“Platinum is regaining investors’ attention as fundamentals improve,” ANZ stated.
Gold and palladium substitution bolster demand, while South African mining problems impact supply recovery this year.
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