FUNDAMENTALS
* Spot gold was up 0.3% at $2,068.29 an ounce by 01:29 GMT. Bullion prices gained 13% in 2023 to post their first annual increase since 2020.
* US gold futures also rose 0.3% to $2,077.40 an ounce.
* This week’s focus will be on the minutes of the Fed’s latest meeting scheduled for Thursday for more clues on rate cuts this year. Data on U.S. job openings and nonfarm payrolls for December will also be closely watched this week.
* At its December policy meeting, the Fed took an unexpectedly dovish tone and planned rate cuts of 75 basis points for 2024.
* Markets are now pricing in an 86% probability of a rate cut from the US central bank in March, according to the CME FedWatch tool. * Lower interest rates lower the opportunity cost of holding bullion without yield and weigh on the dollar, making gold cheaper for investors holding other currencies.
* The dollar index remained stable on the first trading day of the year after posting its first annual loss since 2020. [USD/]
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16% to 879.11 tonnes on Friday from 880.55 tonnes on Thursday. [GOL/ETF]
* Physical demand for gold in India remained sluggish last week as a rise in local prices to near-record highs discouraged buyers during the year-end holidays.
* Spot silver gained 0.5% to $23.88 an ounce, while platinum was flat at $987.61. Palladium slipped 0.9% to $1,088.82.
FUNDAMENTALS
* Spot gold was up 0.3% at $2,068.29 an ounce by 01:29 GMT. Bullion prices gained 13% in 2023 to post their first annual increase since 2020.
* US gold futures also rose 0.3% to $2,077.40 an ounce.
* This week’s focus will be on the minutes of the Fed’s latest meeting scheduled for Thursday for more clues on rate cuts this year. Data on U.S. job openings and nonfarm payrolls for December will also be closely watched this week.
* At its December policy meeting, the Fed took an unexpectedly dovish tone and planned rate cuts of 75 basis points for 2024.
* Markets are now pricing in an 86% probability of a rate cut from the US central bank in March, according to the CME FedWatch tool. * Lower interest rates lower the opportunity cost of holding bullion without yield and weigh on the dollar, making gold cheaper for investors holding other currencies.
* The dollar index remained stable on the first trading day of the year after posting its first annual loss since 2020. [USD/]
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16% to 879.11 tonnes on Friday from 880.55 tonnes on Thursday. [GOL/ETF]
* Physical demand for gold in India remained sluggish last week as a rise in local prices to near-record highs discouraged buyers during the year-end holidays.
* Spot silver gained 0.5% to $23.88 an ounce, while platinum was flat at $987.61. Palladium slipped 0.9% to $1,088.82.