Gold near $2,000 as investors await US data

Gold prices stabilized near the level of $2,000 an ounce today, Wednesday, while investors are cautious and awaiting US economic data that may help them predict the path of US interest rates.

According to Reuters, gold held steady in the spot market at $1999.09 an ounce by 0042 GMT. And US gold futures increased 0.3 percent to 2010.20 dollars.

The dollar index fell 0.1 percent, which increases the precious metal’s attractiveness to buyers holding other currencies.

Data on Tuesday showed US consumer confidence fell to a nine-month low in April as anxiety about the future grows, exacerbating the risk of the economy falling into a recession this year.

Single-family home sales in the United States jumped to the highest level in a year in March, and the rise in demand is likely to be a result of lower interest rates on mortgages.

The US central bank’s Federal Open Market Committee, which sets interest rates, is scheduled to meet on May 2 and 3.

Although gold is considered a tool to hedge against inflation and economic uncertainty, high interest rates reduce the attractiveness of the precious metal, which does not yield a return.

Spot silver rose 0.1 percent to $25.06 an ounce, while platinum rose 0.7 percent to $1,094.12, and palladium rose 1 percent to $1,498.95.