Gold down as dollar rises, investors await US data

Gold prices fell today, Thursday, with the rise of the dollar, while investors await US economic data that could provide indications about whether the Federal Reserve (the US central bank) will slow the pace of raising interest rates.

According to Reuters, gold fell in spot transactions by 0.5 percent to $1,936.97 an ounce by 0935 GMT, after earlier hitting its highest level since April 2022 at $1,949.09. US gold futures fell 0.3 percent to $1,937.20.

The dollar index rose slightly, but remained near its lowest level in eight months.

Investors are awaiting the announcement of US GDP estimates for the fourth quarter scheduled at 1330 GMT, as well as the publication of personal consumption expenditures data in the United States tomorrow, ahead of the Federal Reserve’s policy meeting scheduled for January 31 and February 1. Traders will also look at the US weekly jobless claims data, due for release later in the day.

Investors widely expect the Federal Reserve to slow interest rate hikes to 25 basis points from 50 basis points in December.

Reducing interest rate hikes tends to support gold prices, as it reduces the opportunity cost of possessing the precious metal that does not yield a return.

As for other precious metals, silver fell in spot transactions by 1.2 percent, to $23.6137 an ounce, platinum fell 0.9 percent to $1,030.25, and palladium fell 1.2 percent, to $1,677.40.