Feb 27 (Reuters) - Gold prices edged up on Monday as the
dollar eased, but hovered near their lowest levels since late
December after U.S. economic data last week raised worries that
the Federal Reserve could hike interest rates further.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,813.30 per ounce, as of
0056 GMT. U.S. gold futures firmed 0.2% to $1,819.90.
* The dollar index eased 0.1%, making bullion less
expensive for buyers holding other currencies.
* Data on Friday showed consumer spending, which accounts
for more than two-thirds of U.S. economic activity, shot up 1.8%
last month - the largest increase since March 2021.
* The personal consumption expenditures (PCE) price index
rose 0.6% last month, after gaining 0.2% in December.
* U.S. Treasury Secretary Janet Yellen told Reuters on
Saturday that the data showing inflation jumped unexpectedly in
January signals that the fight against inflation "is not a
straight line" and more work is needed.
* "It's going to take more effort on the part of the Fed to
get inflation on that sustainable downward path to 2%,"
Cleveland Fed President Loretta Mester said on Friday.
* While bullion is seen as an inflation hedge, rate hikes
dent its appeal.
* Money markets expect the Fed's target rate to peak at
5.397% in July, from a current range of 4.50% to 4.75%.
* Premiums on physical gold in top consumer China rose last
week, helped by strong demand amid a dip in global rates, while
prices in India traded at a discount on improved supplies.
* Spot silver rose 0.2% to $20.80 per ounce, platinum added 0.4% to $912.67 and palladium gained 1.4% to
$1,422.30.
DATA/EVENTS (GMT)
0500 Japan Leading Indicator Revised Dec
1000 EU Consumer Confid. Final Feb
1100 France Unemp Class-A SA Jan
1330 US Durable Goods Jan
(Reporting by Kavya Guduru in Bengaluru; Editing by Rashmi
Aich)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.