Home Economy News Gold holds tight range ahead of U.S. economic data

Gold holds tight range ahead of U.S. economic data

by

Gold holds tight range ahead of U.S. economic data By Reuters

Breaking News

‘;

Economy 19 minutes ago (Jan 24, 2023 10:30PM ET)

(C) Reuters. FILE PHOTO: Gold bullion is displayed at GoldSilver Central’s office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

By Ashitha Shivaprasad

(Reuters) – Gold prices traded in a tight range on Wednesday as investors stayed away from taking big bets ahead of U.S. economic growth data this week, while expectations of slower interest rate hikes from the Federal Reserve kept bullion’s outlook bright.

Spot gold was steady at $1,937.09 per ounce, as of 0249 GMT, after hitting its highest since late April 2022 on Tuesday. U.S. gold futures were up 0.2% at $1,940.00.

Market focus is now on the fourth-quarter U.S. GDP data due on Thursday, which could set the tone for the Fed’s Jan. 31-Feb. 1 policy meeting.

The market is not taking a clear direction ahead of the U.S. GDP data and the Fed meeting, said Ilya Spivak, head of global macro at Tastylive.

Most investors are expecting the Fed to raise rates by 25 basis points (bps) at its policy meeting next week. The U.S. central bank slowed its tightening pace to 50 bps last month after four straight 75-bp hikes.

With lower interest rates translating into lesser returns on interest-bearing assets like government bonds, investors may prefer zero-yield gold.

If there are signs that the U.S. economy is slowing and the Fed will soon slow its tightening pace and cut interest rates, then gold could gain, Spivak said.

“However, for prices to breach the $2,000 level, the U.S. dollar has to continue weakening,” he added.

The dollar index slipped 0.1%. A weaker dollar tends to make greenback-priced gold more attractive for buyers holding other currencies. [USD/]

Data showed on Tuesday Swiss exports of gold to countries including China, Turkey, Singapore and Thailand surged to multi-year highs in 2022.

Among other precious metals, spot silver dipped 0.2% to $23.62 per ounce and platinum lost 0.2% at $1,054.40. Palladium rose 0.1% to $1,745.38.

Gold holds tight range ahead of U.S. economic data

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2023 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News