BENGALURU- Gold prices struggled for momentum on Wednesday, with investors awaiting US economic data that could influence the Federal Reserve’s rate-cut timeline.
Spot gold was little changed at $2,408.88 per ounce, as of 0208 GMT. US gold futures ticked up 0.1 percent to $2,408.80.
Investors expect key US data releases this week, including the second-quarter gross domestic product (GDP) reading on Thursday and the June personal consumption expenditures (PCE) price index number on Friday, to offer more cues about the rate-cut timeline.
“If either the GDP or core PCE figures produce an upside beat, this could provide a stumbling block for gold in the short term on dollar strength,” said Tim Waterer, KCM Trade’s chief market analyst.
But “the near-term outlook for gold remains constructive from a fundamental point of view, given that the Fed appears to be on the doorstep of a rate cut.”
The Fed will cut interest rates just twice this year, in September and December, as resilient US consumer demand warrants a cautious approach despite easing inflation, according to a growing majority of economists in a Reuters poll.
Bullion prices scaled an all-time high of $2,483.60 last week amid rising bets of rate cuts. Lower interest rates reduce the opportunity cost of holding non-yielding gold.
Meanwhile, India slashed import duties on gold and silver to 6 percent from 15 percent , which ANZ said should support jewelry manufacturing in the world’s second-biggest consumer of bullion and add to an already favorable backdrop for demand.
Gold was trading at a premium in India for the first time in 11 weeks on Tuesday.
Among other metals, spot silver fell 0.1 percent to $29.19 per ounce.
“Growth estimates in photovoltaic panel usage have been markedly revised higher, resulting in silver demand draws far exceeding supply. A price squeeze within a few years is becoming more likely,” Sprott Asset Management said in a report.
Platinum was steady at $943.90 and palladium eased 0.1 percent to $924.75.
