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Gold prices moved in a narrow range today, Wednesday, as investors refrained from taking big bets ahead of the release of US economic data this week, while expectations that the Federal Reserve (the US central bank) will slow the pace of interest rate hikes kept the yellow metal attractive. ,
According to “Reuters”, the price of gold settled in spot transactions at $ 1937.09 an ounce (an ounce) at 0249 GMT, after it recorded its highest level since late April 2022 on Tuesday. US gold futures rose 0.2 percent to $1,940.00.
The market’s focus is now on US Q4 GDP data due on Thursday, which could set the pace for rate hikes during the Fed’s January 31-February 1 policy meeting.
If there are signs that the US economy is slowing down and the central bank will soon slow its pace of monetary tightening and lower interest rates, gold may rise.
Most investors expect the bank to raise interest rates by 25 basis points at the policy meeting next week, after slowing its hawkish pace to 50 basis points last month following four consecutive increases of 75 basis points each.
With low interest rates curtailing returns on assets such as government bonds, investors may prefer non-yielding gold as a safe haven from interest fluctuations.
Meanwhile, the dollar index fell 0.1 percent. The weakness of the dollar tends to make the gold priced in it more attractive to buyers than holders of other currencies.
In terms of other precious metals, silver fell in spot transactions by 0.2 percent, to $23.62 an ounce, and platinum fell 0.2 percent, to $1,054.40. However, palladium rose 0.1 percent to $1,745.38.