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Gold ticks up, U.S. inflation data in focus
  + stars: | 2024-10-10 | by ( ) www.cnbc.com   time to read: +2 min
Gold prices nudged higher on Thursday, while traders await a key U.S. inflation data due later in the day to gauge the Federal Reserve's future monetary policy stance. Spot gold rose 0.2% to $2,614.00 per ounce by 0246 GMT, after easing for the previous six sessions. The U.S. Consumer Price Index for September is due at 1230 GMT and Producer Price Index data on Friday. Markets see an 80% chance of a 25-basis-point Fed rate cut in November. Dallas Fed Bank President Lorie Logan called for gradual cuts and said that the U.S. central bank should not rush.
Persons: Price, Ilya Spivak, Spivak, Mary Daly, Lorie Logan, Israel's Organizations: U.S, Consumer, Treasury, Fed, San Francisco Fed Bank, Dallas Fed Bank Locations: U.S, Iran
But overall bank credit has been stalled at about $17.5 trillion since January. The response - less lending, tighter credit standards and higher interest on loans - was already taking shape. Hard data on bank lending and credit will come into play, augmenting topline statistics like unemployment and inflation that the Fed is focused on. Reuters GraphicsSENTIMENT WEAKENINGThe survey of large and small banks asks high-level questions - Are lending standards tighter or looser? A Dallas Fed bank conditions survey, conducted in late March after the two bank failures, indicated lending standards in that Fed regional bank's district have kept tightening, with loan demand falling.
The Minneapolis Fed directors sought to have the discount rate, which sets the cost for a key emergency lending rate, moved to 3.50% from the 2.50% level it stood at when those directors voted on Sept. 8. It raised the discount rate by the same margin, its usual practice, to its current level of 3.25%. Meanwhile, the boards of the New York and San Francisco Fed banks voted for a 3% discount rate, the minutes said. The 12 regional Fed banks are quasi private intuitions that are each overseen by boards of directors drawn from the private sector. Discount rate votes do not determine where the Fed sets the federal funds rate, its chief tool for influencing the direction of the economy.
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