(Bloomberg) -- Gold held a six-day decline, as traders waited for US inflation data that may define Federal Reserve policy easing in the coming months.
Bullion traded near $2,608 an ounce — down 1.7% so far this week — as Treasury yields pushed higher amid fading expectations for another 50-basis-point rate cut by the US central bank. Lower rates tend to benefit gold, as it doesn’t pay interest.
The latest Fed minutes showed Chair Jerome Powell received pushback against September’s half-point move, with some officials voicing preference for a smaller reduction. Fed Bank of Dallas President Lorie Logan separately said Wednesday that monetary easing should be implemented at a slower pace following last month’s cut.
US consumer price data to be released later Thursday is expected to show inflation further moderating, supporting the Fed’s anticipated easing in the coming months.
Despite the six-day decline, the precious metal is still up by more than 25% this year as rate-cut optimism has fueled recent gains. Strong central bank purchases and heightened geopolitical tension have also supported gold, though fears that hostilities in the Middle East could morph into a full-blown regional war have yet to be realized — possibly reducing some haven demand.
Spot gold was steady at $2,609.03 an ounce as of 7:33 a.m. in Singapore, down from an all-time high of $2,685.58 in September. The Bloomberg Dollar Spot Index was flat after a run of eight daily gains. Silver was little changed, platinum edged up and palladium dipped.
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