March 25 (Reuters) – Gold prices rose on Monday as investors awaited this week's key economic data and comments from U.S. Federal Reserve officials seeking further confirmation of interest rate cuts signaled by the U.S. central bank. remained steady.
At 1116 GMT, spot gold was up 0.3% at $2,171.42 an ounce, while silver was up 0.3% at $24.73.
US gold futures rose 0.6% to $2,172.50.
Investors are focused on weekly new jobless claims due Thursday and Friday's U.S. core personal consumption expenditures (PCE) price index data. Due to the Good Friday holiday, market reaction to the PCE data may only be known next week.
“It (US inflation statistics) will have a significant impact,” said Kunal Shah, head of research at Nirmal Bhan Commodities in Mumbai. That could lead to an increase or vice versa.”
As interest rates fall, the opportunity cost of holding non-yielding bullion decreases.
Shah said the long-term outlook for gold remains positive due to expectations for rate cuts this year, strong central bank demand and continuing geopolitical crises in Russia and the Middle East.
Gold prices hit a record high last week after Federal Reserve Chairman Jerome Powell said the U.S. central bank was still likely to cut interest rates by three-quarters of a percentage point by the end of 2024.
A number of Fed officials are scheduled to speak this week.
According to CME FedWatch Tool, opens new tab, traders are pricing in a 75% chance of a June rate cut, up from 60% before the Fed's March policy meeting last week.
In autocatalysts, platinum rose 1.2% to $904.53 and palladium rose 2.1% to $1,006.10.
Demand for automotive platinum group metals is expected to be under pressure in the short term from sales of battery electric vehicles in North American and European markets, Heraeus Metals said in a report.
The report comes after the Biden administration lowered the U.S. EV adoption target from 67% to just 35% by 2032, following pushback from industry and auto workers.
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Sherin Elizabeth Varghese reports in Bangalore.Editing: Shilpi Majumdar
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