FUNDAMENTALS
* Spot gold was down 0.3% at $1,962.36 per ounce, as
of 0049 GMT. U.S. gold futures also fell 0.3% to
$1,980.10.
* The dollar index was 0.3% higher.
* Oil prices surged on Monday after Saudi Arabia and other
OPEC+ oil producers announced a surprise round of output cuts, a
potentially ominous sign for global inflation just days after a
slowdown in U.S. price data had boosted market optimism.
* U.S. consumer spending rose moderately in February, and
while inflation cooled, it remained high enough to possibly
allow the Federal Reserve to raise interest rates one more time
this year.
* The opportunity cost of holding non-yielding bullion rises
when interest rates are increased to bring down inflation.
* Markets see a 48.4% chance of the Fed hiking rates by a
quarter point in May, according to the CME FedWatch tool.
* Fed Board Governor Lisa Cook on Friday said she is
watching credit conditions closely and will factor in potential
economic headwinds from recent banking sector turmoil as she
weighs the right level of rates to deal with high and persistent
inflation.
* Fed Bank of New York President John Williams said on
Friday how financial conditions play out will be a key
contributor to his thinking about what's next for central bank
interest rate policy.
* Spot silver shed 0.7% to $23.91 per ounce, platinum dropped 0.5% at $986.39, while palladium edged up
0.1% to $1,461.80.
DATA/EVENTS (GMT) 0145 China Caixin Mfg PMI Final 0750 France S&P Global Mfg PMI 0755 Germany S&P Global/BME Mfg PMI 0800 EU S&P Global Mfg Final PMI 0830 UK S&P GLBL/CIPS Mfg Final PMI 1345 US S&P Global Mfg PMI Final 1400 US ISM Manufacturing PMI (Reporting by Kavya Guduru in Bengaluru; editing by Uttaresh Venkateshwaran)
