Gold ticks up as traders eye economic dataAbdul Gh Lone 30 March 2023 0 COMMENTS
Gold prices edged up on Thursday, helped by a softer dollar as investors lie in wait for economic data to gauge the US Federal Reserve’s rate-rise path.
Spot gold was up 0.3% at $1,969.13 per ounce, as of 1157 GMT. U.S. gold futures rose 0.1% at $1,986.30.
The dollar index eased 0.2%, making gold more attractive for overseas buyers.
“This is a massive week for economic data from the U.S. and this has led to gold essentially trading in a holding pattern,” StoneX analyst Rhona O’Connell said.
U.S. gross domestic product data and weekly initial jobless claims data is due at 1230 GMT. Core U.S. personal consumption expenditures (PCE) data is due out on Friday.
Investors will scan the data for implications for the U.S. central bank’s monetary policy. According to the CME FedWatch tool, markets see a 58.7% chance of the Fed maintaining rates at current levels in May.
“The outlook for gold prices remains constructive for a return to the recent highs, as the Fed is unlikely to raise rates much higher than current levels,” said Michael Hewson, chief market analyst at CMC Markets.
Last week, bullion prices surpassed the key $2,000 level on safe-haven demand spurred by the recent banking turmoil.
Limiting gains, European stocks rose to three-week highs on fading concerns about stress in the banking sector.
“We expect the gold price to fall to around $1,900 per troy ounce (previously $1,800 per troy ounce) in the coming months,” Commerzbank wrote in a note.
Spot silver rose 1.8% to $23.76 per ounce.
Citi wrote in a note it was staying “modestly bullish on platinum and see prices rising to $1,050/oz over the next 6-12 months, though sluggish global growth should reduce its upside relative to gold and silver.”
Platinum rose 1.4% to $980.79 and palladium gained 0.8% to $1,451.53.