Gold prices dip as firmer dollar dampens appeal – 2024-02-25

Feb 26 (Reuters) – Gold prices inched down on Monday,
pressured by a firmer dollar, while investors awaited further
clues on the U.S. Federal Reserve’s timing of this year’s first
interest rate cut.

FUNDAMENTALS

* Spot gold was down 0.3% at $2,030.9 per ounce, as
of 0100 GMT. U.S. gold futures edged 0.4% lower to
$2,040.6 per ounce.

* The dollar index was up 0.1%, making
greenback-priced bullion less affordable for overseas buyers.

* Last week, Fed Governor Christopher Waller said he was in
“no rush” to cut rates, firming investor bets against U.S.
interest rate cuts before June.

* While another Fed official sees the U.S. central bank on
track to cut interest rates “later this year,” despite
stronger-than-expected inflation and labour market data in
January.

* Most policymakers at the Fed’s last meeting were concerned
about the risks of cutting interest rates too soon, minutes
showed.

* Markets are currently pricing in a 68% chance of a cut in
June, according to the CME Fed Watch Tool. Lower interest rates
boost the appeal of holding non-yielding bullion.

* Meanwhile, a surge of interest in bitcoin exchange-traded
funds (ETFs) is prompting investors to swap out holdings in
gold-backed ETFs.

* Spot platinum was down 0.4% at $896.95 per ounce,
palladium fell 0.3% at $968.23, while silver lost
0.4% at $22.86 per ounce.
DATA/EVENTS (GMT)
1500 US New Home Sales-Units Jan
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing
by Sherry Jacob-Phillips)