- Spot gold prices rose globally by 0.2% to $2,367.79 per ounce, while US futures rose by 0.3% to $2,374.10.
- Investors traded the precious metal in a narrow price range during early Asian trading on Wednesday, as they awaited a key reading on inflation in the United States, which could shed more light on the path of interest rates by the Federal Reserve.
- Federal Reserve Chairman Jerome Powell said in his Senate testimony yesterday that inflation has improved in recent months, adding that “more good data would strengthen” the case for more accommodative monetary policy.
- Powell is scheduled to speak before the House of Representatives later today.
- According to CME Group’s FedWatch service, traders currently see a 73% chance of a rate cut in September. Demand for non-yielding gold increases as interest rates fall.
- June CPI data, due out on Thursday, is expected to show headline prices rose 0.1% on a monthly basis and core prices rose 0.2%, which would put the year-on-year rise at 3.1% and 3.4% respectively.
- As for other precious metals, silver rose in spot transactions by 0.3% to $30.89 per ounce, while platinum was stable at $984.55, and palladium increased by 0.1% to $981.37.
