Gold prices are moving in a narrow range ahead of the release of US economic data

Gold prices are moving in a narrow range ahead of the release of US economic data
Gold prices are moving in a narrow range ahead of the release of US economic data
-

Gold prices moved in a narrow range today, Wednesday, as investors shied away from taking big bets ahead of US economic data this week, while expectations that the US Federal Reserve will slow the pace of interest rate hikes kept the yellow metal attractive.

The spot gold price settled at $1937.09 an ounce at 02:49 GMT, after hitting its highest level since late April 2022 yesterday, Tuesday. US gold futures rose 0.2% to $1,940, according to Reuters.

The market’s focus is now on US fourth-quarter GDP data due tomorrow, Thursday, which could set the pace for rate hikes during the Fed’s January 31-February 1 policy meeting.

If there are signs that the US economy is slowing down, and that the central bank will soon slow its monetary tightening and lower interest rates, then gold may rally.

-

Most investors expect the bank to raise interest rates by 25 basis points at the policy meeting next week, after slowing its hawkish pace to 50 basis points last month following four consecutive increases of 75 basis points each.

--

With lower interest rates curtailing returns on assets such as government bonds, investors may prefer non-yielding gold as a safe haven from interest volatility.

Meanwhile, the dollar index fell 0.1%, as a weaker dollar tends to make gold, in which it is priced, more attractive to buyers holding other currencies.

In terms of other precious metals, silver fell in spot transactions by 0.2% to $23.62 an ounce, and platinum fell 0.2% to $1054.4. However, palladium rose 0.1% to $1745.38.

-

--

PREV The judicial investigator sues four judges in the Beirut port explosion, and the Public Prosecution Office rejects his decisions – SWI swissinfo.ch
NEXT Al-Dulais praises the achievements of the municipality of Deir al-Balah and honors its former heads