FUNDAMENTALS
* Spot gold held steady at $2,314.29 an ounce at 0037 GMT. U.S. gold futures lost 0.1% to $2,322.90.
* Lower rates increase the appeal of holding gold without yield. Markets currently estimate a September U.S. rate cut at 65%, according to CME’s FedWatch tool.
* Separately, Minneapolis Fed President Neel Kashkari said Tuesday that slowing inflation, supported in part by a strong housing market, means the U.S. central bank will need to keep borrowing costs steady for an “extended period”, and perhaps all year round.
* China’s central bank added 60,000 troy ounces of bullion to its reserves in April, according to official data released Tuesday, extending the period of consecutive purchases to 18 months.
* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.21% to 830.47 tonnes on Tuesday from 832.19 tonnes on Monday.
* The United States said negotiations on a ceasefire in Gaza should help bridge gaps between Israel and Hamas as Israeli forces took control of the main border crossing at Rafah on Tuesday.
* A key measure of global indebtedness resumed its rise as global debt hit a record $315 trillion in the first quarter of the year, fueled by borrowing in emerging markets, the United States and in Japan, according to a study.
* Spot silver fell 0.1% to $27.25 an ounce, platinum gained 0.5% to $981.10 and palladium rose 0.4% to $974.59 .
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