BENGALURU- Gold prices inched higher on Wednesday, as US Treasury yields eased, while market participants waited for more US economic data to determine the number of interest rates cuts the Federal Reserve is likely to deliver in the near term.
Spot gold rose 0.3 percent to $2,667.97 per ounce by 0217 GMT, $17 shy of a record high hit last month. US gold futures gained 0.2 percent to $2,683.80.
The 10-year Treasury yields slipped for a third straight session, making zero-yield bullion more appealing.
“The game changer in gold prices is the US monetary policy easing as it sets the stage for investment demand,” said ANZ commodity strategist Soni Kumari.
“The uncertainly surrounding US elections and geopolitical tensions will also support gold going forward.”
Investors looked forward to US retail sales, industrial production and weekly jobless claims data, due on Thursday, for fresh cues on the Fed’s monetary easing cycle.
Traders are pricing in a 97.2 percent chance of a 25 basis-point Fed rate cut in November.
San Francisco Federal Reserve Bank President Mary Daly said the central bank remains on track for more cuts this year as long as data meets expectations.
