Gold Flat Ahead of US Data, But Set for Fourth Straight Monthly Gain

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
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Gold Flat Ahead of US Data, But Set for Fourth Straight Monthly Gain

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)

Gold prices were set for a fourth straight monthly gain, even as the market struggled for momentum on Friday ahead of a key US inflation reading that could provide more indications on how the Federal Reserve might proceed with rate cuts later this year.
Spot gold was unchanged at $2,343.63 per ounce, as of 0726 GMT. Bullion prices are up 0.4% so far this week and 2.5% so far in the month.
US gold futures was flat to $2,341.80, said Reuters.
The monthly gains are due to "the central bank (buying) element and the residual geopolitical risk story," said Kyle Rodda, a financial market analyst at Capital.com.
The market is now waiting for the release of the US core Personal Consumption Expenditures (PCE) price index data, the Fed's preferred measure for inflation, at 1230 GMT.
"Ahead of the data, gold prices have been largely treading water... A weaker US GDP read last night may call for imminent policy easing, but much validation will still revolve around the extent of inflation progress," said IG market strategist Yeap Jun Rong.
Any upside in PCE could put gold on the back foot but it may take much more to reverse the broader upward trend, with buyers likely to step in to defend the $2,300 level, he added.
Data on Thursday showed that the US economy grew more slowly in the first quarter than previously estimated.
Meanwhile, traders have dialed back rate-cut expectations after Fed officials recently struck a hawkish tone that suggests a longer route to the 2% inflation target.
While bullion is considered an inflation hedge, higher rates increase the opportunity cost of holding the non-yielding asset.
Spot silver was steady to $31.18 per ounce, but was set for its biggest monthly gain since July 2020.
Platinum was up 0.3% at $1,026.75 and palladium gained 0.2% to $949.34.
Nornickel, the world's largest producer of palladium , said it expected a global deficit of 0.9 million ounces for palladium in 2024.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.