gold rate today: Gold flat after Powell’s hawkish speech; focus on economic data

Gold prices were flat on Monday as Federal Reserve Chair Jerome Powell’s hawkish commentary doused expectations that the U.S. rate-hiking cycle was nearing an end, with investors awaiting economic data this week for confirmation on rate trajectory.

FUNDAMENTALS

* Spot gold was little changed at $1,915.79 per ounce by 0105 GMT, U.S. gold futures gained 0.2% to $1,943.60 as investors awaited key economic data including the U.S. non-farm payroll report on Friday.

* Any thoughts that the 2% inflation goal long sought by the U.S. Fed and the European Central Bank (ECB) might possibly be in for a tweaking were dashed by the chiefs of the two institutions.

* Speaking at the annual gathering in Jackson Hole, Wyoming on Friday, Powell left open the possibility of further rate increases and stressed the U.S. economy’s surprising strength, though he acknowledged declines in the pace of inflation over the past year.

* Interest rate futures tied to the Fed’s policy rate priced in a more than even chance of tightening at either the November or December policy meetings after Powell’s speech.

* Beating inflation will probably require one more U.S. interest-rate hike and then going on hold for “a while,” Cleveland Federal Reserve Bank Loretta Mester said on Saturday. * The drop in euro zone inflation needs to be timely and sustainable before policymakers can conclude they have succeeded, ECB President Christine Lagarde said.

* China halved the stamp duty on stock trading effective Monday in the latest attempt to boost the struggling market, as a recovery sputters in the world’s second-biggest economy.

* COMEX gold speculators cut net long position by 20,845 contracts to 25,695 in week to Aug. 22, data showed on Friday.

* Elsewhere, spot silver rose 0.3% to $24.30 per ounce and platinum steadied at $944.21. Palladium added 0.7% to $1,232.39.

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