Gold prices flat ahead of US economic data

Gold prices were flat in early Asian trade on Wednesday, with investors awaiting US economic data that could influence the Federal Reserve’s rate-cut timeline.

FUNDAMENTALS

* Spot gold was little changed at USD 2,409.66 per ounce, as of 0032 GMT. US gold futures ticked 0.1% higher to USD 2,410.50.

* The Fed will cut interest rates just twice this year, in September and December, as resilient US consumer demand warrants a cautious approach despite easing inflation, according to a growing majority of economists in a Reuters poll.

* Bullion prices scaled an all-time high of USD 2,483.60 last week amid rising bets of US rate cuts. Lower interest rates reduce the opportunity cost of holding non-yielding gold.

* Key data releases this week include the second-quarter gross domestic product (GDP) reading due on Thursday and the June personal consumption expenditures (PCE) price index on Friday.

* SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21% to 841.74 tons on Tuesday from 840.01 tons on Monday.

* India slashed import duties on gold and silver on Tuesday in a move industry officials said could lift retail demand and help cut smuggling in the world’s second-biggest bullion consumer.

* Turkey’s central bank said on Tuesday it decided to start swap auctions selling foreign currency and gold against Turkish lira with local banks, according to a document sent to banks.

* Spot silver steadied at USD 29.21 per ounce, platinum fell 0.3% to USD 940.41 and palladium was flat at USD 925.50.

DATA/EVENTS (GMT)

0050 Japan Chain Store Sales YY June

0715 France HCOB Mfg Flash PMI July

0715 France HCOB Services Flash PMI July

0715 France HCOB Composite Flash PMI July

0730 Germany HCOB Mfg Flash PMI July

0730 Germany HCOB Services Flash PMI July

0730 Germany HCOB Composite Flash PMI July

0800 EU HCOB Mfg Flash PMI July

0800 EU HCOB Services Flash PMI July

0800 EU HCOB Composite Flash PMI July

0830 UK Mfg Flash PMI July

0830 UK Services Flash PMI July

0830 UK Composite Flash PMI July

1400 US New Home Sales-Units June

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu)