2024-04-24T06:09:57+00:00
Gold prices inched higher on Wednesday, remaining within a narrow range as investors awaited U.S. economic data to gain insight into the Federal Reserve’s interest rate trajectory.
Spot gold saw a 0.2% increase to $2,327.86 per ounce by 0429 GMT, recovering from its recent low on April 5. Meanwhile, U.S. gold futures held steady at $2,340.90.
According to City Index senior analyst Matt Simpson, the failure to break below $2,300 suggests gold prices will likely trade within a range until new drivers emerge. Simpson predicted that gold will hover between $2,300 and $2,350 unless significant developments occur.
Upcoming U.S. Economic Data
This week, market focus will be on the release of U.S. gross domestic product (GDP) data on Thursday and the Personal Consumption Expenditures (PCE) report on Friday. Analysts anticipate that positive U.S. economic figures could strengthen the dollar and U.S. bond yields further.
Higher bond yields and a stronger dollar typically diminish the appeal of gold as an investment option, particularly for investors holding other currencies. The dollar-denominated bullion becomes less attractive in such scenarios.
Gold prices reached a record high of $2,431.29 on April 12, surging nearly $400 since the beginning of March. However, the rally lost momentum as geopolitical tensions in the Middle East eased, leading to a more than 2% decline in gold prices this week.
Other Precious Metals
Aside from gold, spot silver rose by 0.6% to $27.44 per ounce. Simpson also commented on the silver market, suggesting a potential downward movement following recent highs.
Furthermore, spot platinum increased by approximately 1% to $916.65, while palladium climbed 0.7% to $1,026.23.
(Reuters)
