Gold prices in anticipation of economic data in the U. S.
2023.01.25 05:55
Gold prices in anticipation of economic data in the U. S.
By Kristina Sobol
Budrigannews.com – As investors squared positions ahead of U.S. fourth-quarter economic growth figures, the dollar stabilized, and gold prices edged lower on Wednesday from a nine-month high reached in the previous session.
sank by 0.4 percent to $1,930.58 per ounce at 09:43 GMT, having reached its highest level since late April on Tuesday. The U.S. fell 0.2 percent to $1,931.40.
The Federal Reserve’s meeting from January 31 to February could be influenced by the Commerce Department’s preliminary advance fourth-quarter GDP estimates, which are expected to be released on Thursday. 1 meeting on policy.
According to Ricardo Evangelista, a senior analyst at ActivTrades, Gold’s losses following yesterday’s peak are the result of a technical correction as investors closed positions to lock in profits ahead of the data release.
“The general mood is upbeat, and the Fed is expected to take a more laid-back stance and announce a 25bp rate increase when it meets next week. The scenario, if true, will have a negative impact on the US dollar and treasuries, supporting gold.”
As a result, bullion’s opportunity cost of holding the non-yielding asset decreases when interest rates fall.
In the meantime, the was 0.1% higher than its rivals, making gold more expensive for holders of other currencies. USD/] After slowing its policy tightening spree to 50 basis points last month after four consecutive 75-bp hikes, traders anticipate that the Fed will further slow its rate hike pace. Analysts stated that gold was also receiving support from worries about a possible recession.
In January, U.S. business activity decreased for the seventh month in a row, but the contraction slowed for the first time since September in both the manufacturing and service industries.
Spot silver decreased by 0.4 percent to $23.58 per ounce, platinum decreased by 1% to $1,045.72, and palladium decreased by 0.5 percent to $1,734.50.
