Gold prices rose today, Tuesday, amid a decline in the dollar, and it is likely that the prices of the precious metal will remain in the near term dependent on US economic data that is expected to be published this week and may affect the strategy of the Federal Reserve (US Central Bank) regarding interest rates.
Spot gold rose 0.2% to $1,935.04 an ounce by 0606 GMT.
US gold futures rose 0.4% to $1,935.60, according to Reuters.
Major economic centers such as China and Hong Kong remain closed for the Lunar New Year holidays.
The dollar index fell 0.2%, making bullion priced in the greenback cheaper for holders of other currencies.--
Investors are awaiting estimates for US gross domestic product growth for the fourth quarter of last year, due to be published on Thursday.-
“Any indications of weakness in the US economy will be seen as a reason for the Federal Reserve to ease the pace of tightening, which would support gold, which will attract safe-haven flows,” said Matt Simpson, senior market analyst at City Index.
Low interest usually supports gold prices, as it reduces the opportunity cost of holding non-yielding assets.
As for other precious metals, silver rose in spot transactions by 0.3%, to $23.52 an ounce. Platinum rose 0.8% to $1,055.25. Palladium rose 0.5% to $1,712.57.