Gold Prices In US: Yellow Metal Rates Stabilize Amid Fed Rate Cut Speculations; Macro Data Awaited

Gold prices remained largely steady on Thursday, as investors absorbed remarks from Federal Reserve Governor Christopher Waller regarding potential interest rate cuts. Amidst this backdrop, anticipation swirled around forthcoming US economic data, sought by investors for clearer insights into future policy decisions.

As of 0305 GMT, spot gold showed little movement, hovering around $2,194.36 per ounce, while US gold futures recorded a modest uptick of 0.2% to $2,193.90 per ounce.

March 28 saw a minor uptick in gold prices in the United States, with 10 grams of 22-carat gold edging up to $670, marking a $5 increase from the preceding day. Similarly, the price for 24-carat gold of the same quantity saw a parallel rise, reaching $710, up $5 as well.

A broader market analysis revealed a similar trend, with the cost for 100 grams of 22-carat gold climbing to $6,700, a $50 increase from the previous day. Meanwhile, 100 grams of 24-carat gold also witnessed a $50 gain, reaching $7,100.

Furthermore, the price for 10 grams of 18-carat gold saw a marginal uptick, standing at $548, reflecting a $4 increase compared to the previous day. Similarly, the rate for 100 grams of 18-carat gold rose to $5,480, showing a $40 gain.

Gold had reached record highs recently after the Federal Reserve hinted at the possibility of three rate cuts in 2024, despite persistent concerns over inflationary pressures. However, Fed Governor Waller's recent comments suggesting that disappointing inflation data might delay such cuts provided some reassurance to investors, stabilizing the gold market.

Investors now await key economic indicators, particularly the US core personal consumption expenditure (PCE) price index report scheduled for Friday. This report is expected to shed light on when the Fed might initiate rate cuts. Forecasters anticipate a 0.3% rise in the PCE price index for February, maintaining the annual pace at 2.8%. Additionally, the weekly US initial jobless claims report, due later in the day, remains on investors' radar for further insights into economic conditions.

The prospect of lower interest rates tends to diminish the opportunity cost of holding onto bullion, which could potentially drive up demand for gold.

While gold remained relatively stable, other precious metals showed varied movements. Spot silver maintained its position at $24.67 per ounce, while platinum witnessed a modest increase of 0.7%, reaching $900.35. Palladium experienced more significant gains, climbing 1.3% to $996.19 per ounce.