Gold steady near record high as markets assess Powell’s comment

The US weekly initial jobless claims report is due on Thursday, followed by the Personal Consumption Expenditures index, the Fed’s preferred inflation gauge

Gold held steady near a record high on Wednesday (Sep 24) as investors assessed US Federal Reserve chair Jerome Powell’s cautious comments on interest rate cuts while awaiting a key inflation report due later in the week for further policy cues.

Spot gold held its ground at US$3,762.05 per ounce, as at 8.52 am. Bullion hit a record high of US$3,790.82 on Tuesday.

US gold futures for December delivery fell 0.6 per cent to US$3,794.50.

The US dollar index hovered near a one-week low, making greenback-priced bullion less expensive.

Powell said on Tuesday that the central bank needed to continue balancing the competing risks of high inflation and a weakening job market in coming rate decisions, even as his colleagues staked out arguments on both sides of the policy divide.

The US weekly initial jobless claims report is due on Thursday, followed by the Personal Consumption Expenditures index, the Fed’s preferred inflation gauge.

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Markets anticipate two more 25-basis-point rate cuts this year, with a 93 per cent probability in October and a 77 per cent probability in December, according to the CME FedWatch tool.

In its latest Economic Outlook Interim Report, the Organisation for Economic Cooperation and Development said the full impact of US tariff hikes was still unfolding, with firms so far absorbing much of the shock through narrower margins and inventory buffers.

Nato warned Russia on Tuesday that it would use “all necessary military and non-military tools” to defend itself as it condemned Moscow for violating Estonian airspace in a “pattern of increasingly irresponsible behaviour”.

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Spot silver was steady at US$44.02 per ounce, platinum remained unchanged at US$1,478.15 and palladium fell 0.4 per cent to US$1,214.78. REUTERS