03-02-2023 08:55 AM | Source: Reuters
Gold flat as investors assess interest rate outlook
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 Gold prices were little changed on Thursday, after a slew of economic data added to investor concerns that interest rates globally could stay higher for longer than expected.

FUNDAMENTALS

* Spot gold was flat at $1,836.69 per ounce, as of 0046 GMT, after hitting a one-week peak on Wednesday. U.S. gold futures eased 0.1% to $1,843.40.

* Data on Wednesday showed U.S. manufacturing contracted for a fourth straight month in February, but there were signs that factory activity was starting to stabilise, with a measure of new orders pulling back from a more than 2-1/2-year low.

* U.S. Federal Reserve officials were divided on Wednesday over whether recent high inflation data and a continually hot jobs market would require even more restrictive interest rates, or just patience in maintaining tight monetary policy for a longer period of time.

* Money markets expect the Fed's target rate to peak at 5.465% in September.

* German consumer prices, harmonised to compare with other European Union countries, rose more than anticipated in February, pointing to no let-up in stubborn cost pressures and pushing up European Central Bank rate-hike expectations.

* Elevated interest rates dull gold's appeal as an inflation hedge while raising the opportunity cost of holding the non-yielding asset.

* The dollar index eased 0.1%, making bullion more affordable for buyers holding other currencies. [USD/]

* Benchmark U.S. 10-year Treasury yields hit 4% for the first time since November on Wednesday. [US/]

* Spot silver was unchanged at $20.99 per ounce, platinum lost 0.2% to $953.51 and palladium edged 0.2% lower to $1,442.96.

DATA/EVENTS (GMT)

1000 EU HICP Flash YY Feb

1000 EU HICP-X F, E, A&T Flash YY, MM Feb

1000 EU Unemployment Rate Jan

1330 US Initial Jobless Clm Weekly