GOLD prices held steady on Tuesday (Apr 2) backed by lower US Treasury yields, after touching a record high in the previous session on growing expectations that the Reserve would cut interest rates for the first time in June.
Spot gold was unchanged at US$2,250.26 per ounce, as at 0059 GMT, after hitting an all-time high of US$2,265.49 on Monday.
US gold futures edged 0.6 per cent higher to US$2,270.70 per ounce.
Benchmark US 10-year Treasury yields dipped, lifting the appeal of zero-yield gold.
US manufacturing grew for the first time in 1½ years in March, as production rebounded sharply and new orders increased, but employment at factories remained subdued and prices for inputs pushed higher.
The Federal Reserve Bank of New York said on Monday that underlying inflation pressures weakened in February.
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Factory activity in many Asian economies weakened in March but there were some brighter signs in China and South Korea, surveys and data showed.
Australia’s central bank intends to change the way it provides liquidity to the banking system, moving to one that provides ample liquidity through regular money market operations.
Traders are pricing in a 57 per cent probability that the Fed will begin cutting rates in June, according to the CME Group’s FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.
Spot silver rose 0.4 per cent to US$25.17 per ounce, platinum rose 0.2 per cent to US$903.50 and palladium gained 0.4 per cent to US$1,000.09. REUTERS
