(Reuters) – Gold prices lingered near a four-week low on Wednesday, with investors turning their attention to the outcome of the U.S. Federal Reserve’s policy meeting for more signals on its rate cut timeline.
FUNDAMENTALS
* Spot gold was little changed at $2,288.21 per ounce as of 0023 GMT. Prices fell as much as 2% to their lowest level since April 5 on Tuesday, due to an uptick in the dollar and U.S. Treasury yields. [US/] [USD/]
* U.S. gold futures were down 0.2% at $2,298.70 per ounce.
* Focus is now on the U.S. central bank’s policy decision due at 1800 GMT. Fed is expected to hold its benchmark interest rate steady at 5.25% to 5.5% at the meeting.
* Markets have lowered bets of Fed rate cuts this year due to recent hotter-than-expected U.S. economic data and sticky inflation.
* Higher rates reduce the appeal of holding non-yielding bullion.
* U.S. labor costs increased more than expected in the first quarter amid a rise in wages and benefits, confirming the surge in inflation early in the year that will likely delay a much- anticipated interest rate cut later this year.
* The World Gold Council (WGC) said on Tuesday that global gold demand rose by 3% year-on-year to 1,238 metric tons in the first quarter of 2024, marking the strongest first quarter since 2016.
* South Korea’s central bank may consider buying more gold only in the mid- to long-term, but is not thinking of immediately buying more, a bank official said on Tuesday.
* Spot silver rose 0.1% to $26.30 per ounce, platinum was up 0.1% at $934.65, while palladium lost 0.6% to $941.25.
DATA/EVENTS (GMT)
0600 UK Nationwide house price MM, YY April
0830 UK S&P Global Manufacturing PMI April
1345 US S&P Global Mfg PMI Final April
1400 US ISM Manufacturing PMI April
1800 US Federal Open Market Committee announces its decision on interest rates followed by statement
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich)
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