FUNDAMENTALS
* Spot gold held steady at $2,035.12 an ounce, at 01:31 GMT, after rising more than 0.5% in the previous session.
* US gold futures were also flat at $2,051.20 an ounce.
* Fed officials said Tuesday that if the U.S. economy performs as expected, that could open the door to rate cuts. But the fight against inflation is “not yet over”.
* The Fed could take its time before deciding to lower interest rates, which its president Jerome Powell also underlined in an interview broadcast on Sunday.
* High interest rates increase the opportunity cost of holding bullion, thereby decreasing its attractiveness among other assets.
* Stronger-than-expected data on employment and the services sector prompted traders to reduce their bets on a U.S. rate cut in May. They now expect cuts of four quarter points in 2024, according to LSEG’s IRPR interest rate probability app.
* The market will focus on comments from at least five other Fed officials this week, then later move on to next week’s inflation report, due next Tuesday for additional clues on Fed policy .
* The dollar index and yields on benchmark 10-year Treasury notes fell slightly, making yieldless bullion more attractive to other currency holders.
* Spot silver rose 0.1% to $22.41 an ounce, platinum was flat at $903.99, while palladium fell 0.1% to $949.83.
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