March 31 (Reuters) – Gold prices eased on Friday as the dollar edged up ahead of key U.S. inflation data that could influence the Federal Reserve’s monetary policy path.
FUNDAMENTALS
* Spot gold XAU= was down 0.1% at $1,978.39 per ounce, as of 0043 GMT, after rising 1% on Thursday. U.S. gold futures GCv1 fell 0.1% to $1,996.50.
* The dollar index .DXY was 0.1% higher, making bullion less affordable for buyers holding other currencies. USD/
* Gold is set to end the quarter and the month higher on expectations that the Fed might consider a rate-hike pause after the collapse of two U.S. regional banks.
* The Fed’s preferred inflation measure, the Personal Consumption Expenditures data, due at 1230 GMT is awaited for further clues on the U.S. central bank’s next move.
* The opportunity cost of holding non-yielding gold rises when interest rates are increased to bring down inflation.
* Three Fed officials kept the door open on Thursday to more rate hikes aimed at lowering high levels of inflation, with two noting banking sector problems could generate enough headwinds on the economy to help cool price pressures faster than expected.
* Markets see a 52.2% chance of the Fed standing pat on interest rates in May, according to the CME FedWatch tool.
* Data on Thursday showed the number of Americans filing new claims for unemployment benefits rose moderately last week.
* Spot silver XAG= eased 0.1% to $23.86 per ounce, platinum XPT= was up 0.1% at $986.27 and palladium XPD= fell 0.5% to $1,457.39.
DATA/EVENTS (GMT)
0130 China NBS Manufacturing PMI March
0600 UK GDP QQ, YY Q4
0600 UK Nationwide house price MM, YY March
0645 France CPI (EU Norm) Prelim YY March
0645 France Producer Prices YY Feb
0755 Germany Unemployment Rate, Chg SA March
0900 EU HICP Flash YY March
0900 EU HICP-X F, E, A, T Flash MM, YY March
0900 EU Unemployment Rate Feb
1230 US Consumption, Adjusted MM Feb
1230 US Core PCE Price Index MM, YY Feb
1230 US PCE Price Index MM, YY Feb
1400 US U Mich Sentiment Final March
(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)
((Kavya.Guduru@thomsonreuters.com;))
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