Gold in a tight range ahead of US economic data ‎

Gold rose slightly today, Tuesday, as it was confined to a narrow range, as investors refrained from forming large positions ahead of the release of US economic data that might affect the Federal Reserve’s (US central bank) interest rate strategy.

According to Reuters, gold rose 0.1 percent to $1,842.37 an ounce at 0245 GMT, while it is trading in a four-dollar range. US gold futures also rose 0.1 percent, to $1,852.10.

High interest rates discourage investors from putting money into non-returnable assets such as gold

Gold prices hit their highest levels since April 2022 this month, but have since lost about $120 after a series of economic data showed signs of resilience in the US economy and a scarcity of the labor market, raising fears that interest rates will remain high for a longer period. ..

The minutes of the Fed’s last policy meeting will be released on Wednesday. Financial markets expect the bank to raise benchmark interest rates above 5 percent by May, and to a peak of 5.3 percent in July.

Investors are also awaiting data on core personal consumption expenditures in the United States, which is the Federal Reserve’s preferred measure of inflation, and GDP figures due this week.

The dollar index rose 0.1 percent, making bullion priced in the US currency more expensive for buyers holding other currencies.

In terms of other precious metals, silver rose 0.1 percent to $21.76 an ounce, platinum rose 0.2 percent to $928.26, and palladium increased 0.2 percent to $1507.90.