Gold hovers near record high on growing rate-cut bets
Gold prices inched up on Tuesday, hovering near a record peak hit in the previous session as recent economic data boosted bets that the U.S. Federal Reserve would start cutting interest rates later this year.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,428.14 per ounce, as of 0110 GMT. Bullion hit a record high of 2,449.89 on Monday.
* U.S. gold futures fell 0.3% at $2,431.80.
* Data showed that U.S. consumer prices increased less than expected in April, suggesting that inflation resumed its downward trend, boosting expectations for a September rate cut.
* However, Fed officials are not ready to say inflation is heading to the U.S. central bank's 2% target despite last week's cooling data, with several calling for continued policy caution.
* Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
* Anglo American shareholder Legal & General Investment Management (LGIM) supports the break-up plan announced by the company last week as the deadline approaches for BHP Group to log a formal takeover offer.
* Shares of Chinese developers wobbled as investors fretted that China's «historic» steps to stabilise its crisis-hit property sector fell short of what is required to foster a sustainable turnaround in demand and confidence.
* Investors' risk appetite shows no sign of waning, which in the absence of any major market-moving economic data or events in Asia should pave the way for further gains across the continent when trading gets underway.
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