PRECIOUS-Gold extends rise as Fed rate-cut bets pressure dollar
Aug 14 (Reuters) - Gold rose for a third straight session on Thursday, helped by a weaker dollar and lower Treasury yields as traders raised bets for a U.S. interest rate cut in September.
FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $3,368.99 per ounce, as of 0121 GMT. U.S. gold futures GCcv1 for December delivery rose 0.3% to $3,417.80.
* The dollar .DXY languished near multi-week lows against its rivals, making gold less expensive for other currency holders. Benchmark U.S. 10-year Treasury yields US10YT=RR held near a one-week low. USD/ US/
* Data released on Tuesday showed that U.S. consumer prices increased marginally in July, increasing chances of a Federal Reserve rate cut next month.
* Treasury Secretary Scott Bessent said on Wednesday that there is a good chance of a 50-basis-point cut next month.
* Traders now see a Fed rate cut on September 17 as a near certainty, according to LSEG data, and even lay around 7% odds on a super-sized half-point reduction. 0#USDIRPR
* Non-yielding gold thrives in a low-interest-rate environment.
* Investors will next focus on whether Fed Chair Jerome Powell offers any fresh clues on policy at the U.S. central bank's annual economic policy symposium in Jackson Hole, Wyoming, next week.
* Focus is also on U.S. economic data due later this week, including the U.S. Producer Price Index, weekly jobless claims, and retail sales.
* On the geopolitical front, Ukrainian President Volodymyr Zelenskiy said on Wednesday that he warned U.S. President Donald Trump ahead of his talks with Vladimir Putin this week that the Russian leader is "bluffing" about his desire to end the war.
* Elsewhere, spot silver XAG= edged 0.2% higher to $38.56 per ounce, platinum XPT= eased 0.1% to $1,338.33 and palladium XPD= climbed 1.3% to $1,136.70.
DATA/EVENTS (GMT) | |
0600 | UK GDP Estimate MM, 3M/3M, YY June |
0600 | UK Services MM, YY June |
0600 | UK Manufacturing Output MM June |
0600 | UK GDP Prelim QQ, YY Q2 |
0645 | France CPI (EU Norm) Final MM, YY July |
0645 | France CPI MM, YY NSA July |
0900 | EU GDP Flash Estimate QQ, YY Q2 |
1230 | US Initial Jobless Clm 9 August, w/e |
1230 | US PPI Machine Manuf'ing July |
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New York platinum 0#PL: and palladium 0#PA:
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