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Gold set for second quarterly gain
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U.S. PCE data due at 1230 GMT
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Platinum prices to rise above $1,000/oz - ANZ
(Adds graphic, updates prices)
By Kavya Guduru
March 31 (Reuters) - Gold edged lower on Friday, even as
prices are on track for their best month in more than
two-and-a-half years after the global banking turmoil drove bets
that the U.S. Federal Reserve would tone down its rate hike
approach.
Spot gold was down 0.1% at $1978.65 per ounce, as of
0728 GMT. U.S. gold futures eased 0.1% to $1,978.00.
Bullion was also set for a second straight quarterly gain,
rising 8.6% so far, as a softer dollar made gold a more
attractive bet for investors holding other currencies. The safe-haven metal broke above the $2,000 mark after the
sudden collapse of two U.S. regional lenders earlier this month
fuelled bets that the Fed might pause its rate hike cycle to
stem a likely contagion in the global banking system. But prices
retreated after authorities initiated rescue measures.
Markets see a 45.2% chance of the Fed standing pat on interest rates in May, which could burnish the appeal of zero-yield gold. "There's speculation that the banking crisis is probably not over, but the issues aren't immediately visible or impacting markets right now... so, gold has been consolidating between $1,930 and $2,000," said Ilya Spivak, head of global macro at Tastylive. But three Fed officials kept the door open to more hikes, with two noting banking sector problems could generate enough headwinds to cool price pressures faster than expected. Gold faces downside risk because market expectations of a pause in rate hikes contradicts what the Fed has said, and also hotter-than-expected U.S. data, Spivak said. The U.S. Personal Consumption Expenditures (PCE) data due later on Friday could offer clues on the Fed's next move. Silver slipped 0.5% to $23.77 per ounce, platinum fell 0.4% to $982.45, and palladium gained 1.4% to $1,484.98.
"Supply disruptions in South Africa and investment demand should see platinum prices rising above $1,000/oz," ANZ said in a note.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ xau 2023 asset performance ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips, Subhranshu Sahu and Sonia Cheema)
