Gold firms amid stronger dollar, market awaits important ‎economic data

Gold prices changed slightly today, Monday, as the strength of the US dollar affected the attractiveness of the yellow metal, at a time when markets are awaiting important economic data to obtain more information about the plans of the Federal Reserve (US Central Bank) to raise interest rates in the future.

According to Reuters, gold prices stabilized in spot transactions at $1919.89 an ounce by 0537 GMT. US gold futures fell 0.1 percent to $1,927.50.

“In the near term, I think a pullback towards the $1910-$1913 range will happen and the bulls will try to target an increase in the price around $1937,” said Matt Simpson, chief market analyst at City Index.

Simpson added that buying by speculators may support gold prices.

The stagnant consumer spending in the United States in May indicates that the Fed’s recent hike in interest rates to tame inflation is bearing slow results. The core personal consumption expenditures price index, the Federal Reserve’s preferred measure for tracking inflation, rose 4.6 percent year-on-year, after rising 4.7 percent in April.

Investors see an 87 percent chance of a 25 basis point rate hike in July, according to CME Group’s Feed Watch, and expect rates to remain in a range of 5.25 percent and 5.5 percent before falling in a year. 2024.

Bullion fell 2.5 percent in the second quarter, in light of expectations that the US central bank’s policy of raising interest rates will continue. High interest rates reduce the attractiveness of investing in gold, which does not generate returns.