By Ashitha Shivaprasad
(Reuters) – Gold prices held steady on Tuesday, with key inflation reading and comments from Federal Reserve officials on investors’ radar this week.
Spot gold was little changed at $2,030.99 per ounce as of 12:49 p.m. ET (1749 GMT). U.S. gold futures rose 0.1% to $2,040.40 per ounce.
The dollar index was subdued, making bullion more attractive for overseas buyers. [USD/]
“A slight uptick in inflation data will pressure the gold market but it is well supported at the $2,000 level by central bank buying. It is unlikely Fed officials will change their stance until more data,” said Phillip Streible, chief market strategist at Blue Line Futures, in Chicago.
“Gold will have a record run in the fourth quarter when rate cuts materialise.”
At least 10 Fed officials are due to speak this week, while the core personal consumption expenditures price index, the Fed’s preferred inflation gauge, is due on Thursday.
Recent comments from Fed policymakers suggested that the U.S. central bank is in no rush to cut rates.
Data showed U.S. durable goods orders posted the largest drop in nearly four years in January.
Gold prices were also supported as China’s middle-class attempts “to preserve their dwindling fortunes caused by the property market crisis and a prolonged stock market sell-off”, Ole Hansen, Saxo Bank’s head of commodity strategy, wrote in a note.
Top bullion consumer China’s net gold imports via Hong Kong in January hit the highest since mid-2018, official data showed.
Spot platinum rose 1.3% to $891.50 per ounce, but was down more than 9% so far this year. Palladium fell 0.9% to $942.17 and was down 14% for the year.
“The low price level of platinum and palladium is already leaving its mark on producers of platinum group metals who are likely to reduce their production in response. This should help to stabilize prices,” Commerzbank wrote in a note.
Silver fell 0.2% to $22.48.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shilpi Majumdar)
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