Gold prices declined marginally, during today’s trading, Thursday, January 26, 2023, from their highest levels in 9 months, with the rise of the US dollar.
This comes at a time when investors are awaiting US economic data that may affect the course of tightening the Federal Reserve’s policy.
Gold prices today
By 08:10 a.m. GMT (11:10 a.m. Mecca Al-Mukarramah time), the price of gold futures contracts – delivery of April 2023 – decreased by 0.06%, equivalent to $ 1.20, to reach $ 1958.20 an ounce.
And gold prices ended their dealings, yesterday, Wednesday, January 25, with an increase for the fifth consecutive session, with the decline of the US dollar.
The price of immediate delivery of the yellow metal decreased by 0.20%, to record $ 1942.23 an ounce.
The price of silver futures contracts – delivery of March (2023) – decreased by 0.69%, to record $ 23.78 an ounce.
The spot platinum price decreased by 0.39%, to reach $ 1038.15 an ounce, and the spot palladium price decreased by 0.10%, at $ 1697.16 an ounce.
At the same time, the dollar index, which monitors the performance of the US currency against 6 major currencies, rose about 0.02% to 101.67 points, but it is still hovering near its lowest level in 8 months.
Market attention turns to US Q4 GDP data due at 01:30 PM GMT (04:30 PM Mecca), which could set the tone for the upcoming Federal Reserve policy meeting.
“US GDP data is likely to confirm the slowdown in the US economy,” said Michael Langford, director of corporate advisory firm AirGuide.-
He added: “If the view is that the economy is heading into recession, we will see an additional shift in funds from stocks to gold and the dollar,” according to Reuters.--
He pointed out that the main question for investors will be: To what extent will the dollar strengthen? How will this affect gold prices in the near term?
Most investors expect the Federal Reserve to raise interest rates by 25 basis points at its January 31-February 1 meeting.
The US central bank slowed its hawkish pace to 50 basis points last month, after 4 consecutive increases of 75 basis points.
Gold price forecast
“Gold prices may trade between $1935 and $1960 an ounce until we get to the Fed meeting,” said Edward Moya, senior analyst at OANDA.
Bullion is a non-yielding asset that benefits at low rates; Yields on other assets such as government bonds fall.
Investors will also survey US weekly jobless claims data due later in the day and US PCE data, tomorrow, Friday.
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