07-06-2023 09:14 AM | Source: Reuters
Gold flat, investors await US data for Fed`s rate cues
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Gold was flat on Thursday as investors awaited a raft of U.S. economic data that could influence the Federal Reserve's policy trajectory, after minutes of its June meeting reaffirmed expectations that interest rates could remain higher for longer.

Spot gold held its ground at $1,918.59 per ounce by 0241 GMT, while U.S. gold futures fell 0.1% to $1,925.00.

"With the Fed having its eyes on services' sector prices to gauge inflation persistence, any progress on that front will be sought at the upcoming U.S. ISM services PMI data," said Yeap Jung Rong, market strategist at IG.

A series of labour market data will also be on watch, but much will still revolve around a continued moderation in wage pressures, he added.

Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non-yielding bullion.

A united Fed agreed to hold interest rates steady at the June meeting as a way to buy time and assess whether further rate hikes would be needed, minutes showed.

Federal Reserve Bank of New York President John Williams said on Wednesday it was the right move for the central bank to hold rates steady three weeks ago, while hinting at some point it might have to raise rates again.

Investors will also focus on the U.S. Labor Department's Job Openings and Labor Turnover Survey, and other economic data.

Traders kept a close watch on updates about China's export controls on semiconductor metals ahead of U.S. Treasury Secretary Janet Yellen's Beijing visit.

"Further escalation on that front after the meeting could put market participants on the defensive, which may drive some near-term safe haven flows for gold prices," Jung Rong said.

Spot silver rose 0.1% to $23.1292 per ounce, while palladium fell 0.9% to $1,248.44. Platinum was flat at $915.77.