Gold prices fell on Wednesday, as strong economic data from the United States raised expectations for a rapid economic recovery and reduced the attractiveness of the precious metal, while investors awaited the minutes of the last meeting of the Federal Reserve regarding monetary policy.
And gold fell in immediate transactions 0.4 percent to 1737.09 dollars an ounce. And US gold futures fell 0.3 percent to $ 1737.70 an ounce.
Carlo Alberto De Casa, chief analyst at Active Trades, said the strong US economic data raised concerns that the central bank could reverse its policy sooner than expected.
Expectations are growing that the escalation and acceleration of economic growth and inflation in the United States may force the Federal Reserve to break its promise to keep interest rates near zero until 2024.
Gold, which does not generate a return, is vulnerable to rising interest rates as it raises the opportunity costs of owning the metal and supports the dollar and bond yields.
Market participants were awaiting the minutes of the Federal Reserve’s policy meeting held on March 16-17.
Data on Tuesday showed that vacancies in the United States increased to the highest level in two years in February, while employment rebounded thanks to the strengthening of domestic demand in light of the increase in vaccinations against Covid-19 prevention and additional government assistance to counter the repercussions of the pandemic.
Business activity in the Eurozone also returned to growth last month, supported by a record expansion in the manufacturing sector.
Among other precious metals, silver fell 0.9 percent to $ 24.95 an ounce, and palladium fell 1.5 percent to $ 2,643.49.