Feb 19 (Reuters) – Gold prices inched higher on Monday,
lifted by a softer dollar, as the bullion partially recovered
from a slump last week on hot U.S. inflation data that cooled
prospects of early rate cuts by the Federal Reserve.
FUNDAMENTALS
* Spot gold was up 0.2% at $2,017.77 per ounce, as of
0050 GMT. Bullion lost 0.5% last week.
* U.S. gold futures edged 0.3% higher to $2,029.80
per ounce.
* The dollar index was down 0.1%, making
greenback-priced bullion more affordable to overseas buyers.
* Last week, bullion fell to a two-month low after data
showed consumer prices rose more than expected last month, but
it recouped some of its losses later in the week after U.S.
retail sales fell more than expected in January.
* Federal Reserve Bank of Atlanta President Raphael Bostic
said that while he needs more data to convince him inflation
pressures are truly falling, he’s open to lowering rates at some
point in the next few months.
* Chicago Fed President Austan Goolsbee cautioned against
delaying rate cuts for too long even after data showed consumer
prices rose more than expected in January.
* Traders have pushed back their expectations of a U.S.
interest rate cut from March to June. Markets are currently
pricing a 77% chance of a cut in June, according to the CME Fed
Watch Tool.
* Most U.S. markets will remain closed on Monday for the
President’s Day holiday.
* Spot platinum fell 0.2% at $904.27 per ounce,
palladium rose 1.2% at $960.76, while silver was
down 0.2% at $23.35 per ounce.
DATA/EVENTS (GMT)
n/a UK House Price Rightmove MM, YY Feb
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing
by Sherry Jacob-Phillips)
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