FUNDAMENTALS
* Spot gold held steady at $2,422.45 an ounce at 0106 GMT. Bullion hit a record high of 2,449.89 on Monday.
* US gold futures were flat at $2,426.00.
* Recent data suggests U.S. inflation has resumed its downward trend, but several Fed policymakers have remained cautious about cutting rates too soon and have ruled out the need for a hike. * Fed policymakers said the U.S. central bank would have to wait several more months to ensure inflation is actually back on track to its 2% target before cutting interest rates. * Bullion is known as a hedge against inflation, but higher rates increase the opportunity cost of holding non-yielding gold. * U.S. households continued to feel hurt by inflation in late 2023, even as price pressures eased, with most Americans saying their financial situation had changed little over the past year.
* Minutes from the Federal Reserve’s latest policy meeting, due at 1800 GMT, could offer more insight into the timing of widely anticipated interest rate cuts.
*Shanghai Futures Exchange will increase the trading limit and margin requirements for gold and silver futures from May 23.
* Emboldened by China’s latest moves and commitments to address the weaker aspects of its ailing economy, domestic investors are buying shares in a cheap stock market, while most foreign investors are hopeful but going for it slowly.
* Elsewhere, Israel urged “nations of the civilized world” to oppose the International Criminal Court prosecutor’s request for an arrest warrant against its leaders and to declare that they would ignore the arrest warrants.
* Spot silver rose 0.4% to $32.08 an ounce, platinum rose 0.4% to $1,050.50 and palladium was flat at $1,025.75.
DATA/EVENTS (GMT) 0600 UK Core CPI AA April 0600 UK CPI AA April 1400 US Existing Home Sales April 1800 US Federal Open Market Committee Releases Trial -minutes of its meeting from April 30 to May 1.
