Connect with us

Hi, what are you looking for?


Gold listless as traders look to US data for Fed cues

The gold price fluctuated within a narrow range today as investors abstained from taking large bets before US economic data that can affect the Federal Reserve’s plan to raise interest rates. As of 0245 GMT, spot gold was up 0.1% at $1,842.37 per ounce while fluctuating by $4.

US gold futures increased by 0.1% to $1,852.10.

High rates deter investors from investing in non-yielding assets like gold.

As markets assess whether the Fed’s hawkish repricing may have gone too quickly, the decline in gold prices has “slightly stabilized,” according to OCBC FX strategist Christopher Wong.

Early in the month, gold prices reached their highest level since April 2022. However, it dropped by nearly $120 as a result of a barrage of economic reports that indicated a strong US economy and a tight labor market, which fueled worries that interest rates would continue to rise.

The Fed’s most recent policy meeting will be made public. Additionally, the money markets anticipate Fed to increase benchmark rates above 5% by May. Although high rates are expected for 5.3% in July.

The focus is on core PCE as further hawkish repricing of the Fed requires new catalyst. A strong USD print could put pressure on gold, but gold could bounce back if data release the data comes in below expectations, according to OCBC’s Wong.

Investors are also looking forward to the release of US core personal consumption expenditure (PCE) data. Additionally, Fed’s preferred inflation indicator and gross domestic product estimates later this week.

Greenback-priced bullion has become more expensive for buyers using other currencies as the dollar index increased by 0.1%.

The price of silver increased by 0.1% to $21.76 an ounce. Platinum increased by 0.2% to $928.26, and palladium increased by 0.2% to $1,507,90.

Read: Pakistan’s total debt liabilities surge to Rs63.86 trillion

Sara Tayyab
Written By

Latest Updates

IG Punjab police rejects reports of fight with GB force at Zaman Park LAHORE/ISLAMABAD: Inspector General of Punjab Police Dr Usman Anwar today rejected...


Islamabad police register criminal cases against PTI leaders, and activists for vandalism at judicial complex ISLAMABAD: Islamabad police registered criminal cases against PTI leaders...


IMF’s cat of ‘long-range missiles’ is out of bag: Dar snubs demand to end Shaheen-III missiles ISLAMABAD: Finance Minister Senator Muhammad Ishaq Dar has...


When fans become so obsessive that the line between the actor and the character they play becomes blurred, it can lead to fanaticism. Actor...