Gold prices hold steady on Fed rate outlook
Gold prices were steady on Wednesday and hovered above key $2,400 level touched earlier this week, supported by safe-haven buying and the prospect of interest rate cuts from the U.S. Federal Reserve later this year.
FUNDAMENTALS
* Spot gold held its ground at $2,422.45 per ounce, as of 0106 GMT. Bullion hit a record high of 2,449.89 on Monday.
* U.S. gold futures were steady at $2,426.00.
* Recent data suggested that U.S. inflation resumed its downward trend, but several Fed policymakers remained cautious on cutting rates too soon and ruled out the need for a hike.
* Fed policymakers said the U.S. central bank should wait several more months to ensure that inflation really is back on track to its 2% target before cutting interest rates.
* Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
* U.S. households continued to feel pinched by inflation in late 2023 even as price pressures ebbed with most Americans saying their financial situation had changed little in the last year.
* The minutes of the Federal Reserve's last policy meeting, expected at 1800 GMT, could offer more insights into the timing of widely expected interest rate cuts.
* The Shanghai Futures Exchange will raise the trading limit and margin requirements for gold and silver futures contracts from May 23.
* Emboldened by China's latest measures and pledges to fix the weakest parts of its struggling economy, domestic investors are scooping up shares in a cheap stock market, while
