Monday, February 6, 2023
HomeBusinessGold edges lower from nine-month high, focus turns to U.S. data By...

Gold edges lower from nine-month high, focus turns to U.S. data By Reuters


©Reuters. FILE PHOTO: Gold bars are on display at the GoldSilver Central office in Singapore, June 19, 2017. REUTERS/Edgar Su/File Photo

By Seher Dareen

(Reuters) – Gold stabilized on Wednesday as investors took advantage of a recent price increase to lock in gains ahead of a slew of US economic data that could affect the Federal Reserve’s monetary policy meeting next week.

was little changed at $1,936.79 an ounce at 12:07 a.m. ET (1707 GMT). The US rose 0.1% to $1,938.00.

Some corrective price action and profit taking by traders are the reasons for the slight pullback in gold, which “could be considered healthy for the continuation of the uptrend,” said Jim Wyckoff, senior analyst at Kitco Metals.

The price of gold rose to a nine-month high on Tuesday as fears of a global recession and hopes of slower rate hikes by the US Federal Reserve added to its attractiveness.

The dollar was down 0.1%, making gold more attractive to foreign currency holders and constraining the yellow metal.

The U.S. Commerce Department is expected to release its first preliminary GDP estimates for the fourth quarter on Thursday, which could set the tone for the Fed’s Feb. 31. 1 policy meeting.

The weekly first US jobless claims, new home sales and durable goods orders will also be on investors’ radar tomorrow.

Traders see key rates peak at 4.91% in June, even as Fed policymakers have repeatedly supported interest rates above 5%.

Lower interest rates tend to favor bullion, lowering the opportunity cost of holding the non-performing asset.

See also  Stock Market: बजट वीक में शेयर मार्केट भरेगा उड़ान या होगा धड़ाम, इन 5 फैक्टर्स पर रहेगी नजर - Share Market Week Ahead Budget 2023 to auto sale date 5 key factors that will keep traders busy tutd

“Gold’s run was fueled by a change in sentiment in how soon the Fed will pause its rate hikes, along with the weakening of crypto exchange FTX and the US dollar,” Rupert Rowling, market analyst at Kinesis Money, said in a note.

“Gold needs a new catalyst to push it above the elevated level it is already trading at.”

Elsewhere, spot silver was up 0.4% to $23.77 an ounce, platinum was down 1.6% to $1,040.25 while palladium was down 2.6% to $1,697.33.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments