Spot Gold stuck in narrow range ahead of US CPI, Fed speakers

Spot Gold traded mostly flat at the start of an eventful week, as market focus sets on the US consumer inflation data and on speeches by a host of Federal Reserve officials.

At least 7 Fed representatives are scheduled to make speeches this week, following last week’s remarks that the US central bank wants more proof inflation will keep easing before interest rate cuts are introduced.

According to LSEG’s IRPR app, there is a 65% chance of a Fed rate cut at the bank’s May meeting.

Tuesday’s CPI inflation report may provide more clues over rate outlook. Annual consumer inflation probably slowed to 3% in January, according to market consensus, from 3.4% in December.

Annual core CPI inflation is expected to have decelerated to 3.8% in January from 3.9% in December – a 2 1/2-year low.

As of 8:37 GMT on Monday Spot Gold was inching up 0.05% to trade at $2,025.37 per troy ounce, while moving within a tight daily range.

“Gold is remarkably resilient, given we’ve seen almost 60 basis points of cuts (for 2024) come out of the market since the January high,” Kyle Rodda, financial market analyst at Capital.com, was quoted as saying by Reuters.

“Positioning is neutral, and if the data deteriorates softening the dollar and deepening U.S. rate cut bets, then gold will shine again. The big risk this week is consumer price index (CPI)-if that comes in hot, another test of $2,000/Oz level could be on the cards.”

Gold Futures for delivery in April were up 0.02% on the day to trade at $2,039.20 per troy ounce.

Elsewhere, Silver Futures for delivery in March were up 1.58% to trade at $22.950 per troy ounce.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching up 0.01% to 104.091 on Monday.