Ahead of US economic data.. the decline in gold today

Ahead of US economic data.. the decline in gold today
Ahead of US economic data.. the decline in gold today
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Gold fell today, Wednesday, continuing its decline from a level close to a nine-month peak, which it reached in the last session, as some investors sought to speculate in a way that guarantees them profit, and the dollar stabilized ahead of the release of US economic data, which may determine the path of the Federal Reserve, the “Central Bank of America.” in monetary stress.

The spot gold price fell 0.6% to $1926.79 an ounce, by 0611 GMT, after hitting its highest level since late April 2022 on Tuesday.

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US gold futures fell 0.4 percent to $1,928.40.

Meanwhile, the dollar index stabilized. The strength of the US currency makes the gold priced in it less attractive to buyers than holders of other currencies.

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The market is awaiting the US GDP data for the last quarter

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

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Ilya Spivak, head of global macroeconomics at Tasty Life, said that if there are signs that the US economy is slowing and the central bank will soon slow its pace of monetary tightening and cut interest rates, gold could rally.

However, he added, “For prices to breach the $2,000 level, the US dollar must continue to decline.”

It is expected that the bank will raise interest rates by 25 basis points

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

In terms of other precious metals, silver fell 0.6% to $23.53 an ounce, and platinum fell 0.3% to $1054.25.

Palladium fell 0.8% to $1,728.43.

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