Gold barely moved at the start of the week after eight straight days of gains, as traders watch Tuesday's consumer price index release for clues as to when the Fed might start cutting interest rates. US Federal.
The bullion for immediate delivery was quoted on Monday in a narrow range, after rising almost 5% last week and setting nominal highs in four consecutive days. Friday's gains were helped by U.S. data showing the unemployment rate at a two-year high, contributing to the decline in the dollar and 10-year Treasury yields.
Gold has soared in March, a move that has caught some investors by surprise as there has been no major change in the outlook for when the Fed will begin tapering.. In testimony before Congress last week, Chairman Jerome Powell stressed that the central bank needs “just a little more evidence” that inflation is heading toward its 2% target before reducing borrowing costs. Other policymakers have made similar comments.
Gold bulls' optimism will be tested this week with new US inflation data due on Tuesday. A data above what was expected – as happened last month – would be a setback for the gains of the precious metal, which does not offer profitability and benefits from a lower interest rate environment.
Spot gold was little changed at $2,177.48 an ounce, after hitting a high of $2,195.15 last week. Silver was unchanged after rising more than 5% last week. Palladium and platinum rose almost 7% and 3% respectively last week.
