Gold prices rangebound as traders focus on US economic data
Shafaq News / Gold prices crept higher on Wednesday but were stuck in a narrow range as investors looked to U.S. economic data for further clarity on the Federal Reserve's interest rate path.
Spot gold rose 0.2% to $2,327.86 per ounce by 0429 GMT, after having hit its lowest since April 5 in the previous session. U.S. gold futures were steady at $2,340.90.
"A false break of $2,300 on Tuesday likely means that gold prices will remain rangebound heading into US inflation data and the BOJ meeting... I expect gold to tread water between $2,300 and $2,350 unless a fresh catalyst arrives," City Index senior analyst Matt Simpson said.
This week, investor focus will be on the U.S. gross domestic product (GDP) data due on Thursday and the Personal Consumption Expenditures (PCE) report due on Friday.
Resilient U.S. economic data suggests any surprises are likely to be on the upside, potentially lifting the dollar and U.S. yields further, Simpson noted.
A stronger greenback and elevated bond yields make the dollar-priced bullion less attractive for other currency holders and as an investment option compared to debt.
Bullion prices hit an all-time high of $2,431.29 on April 12, rising nearly $400 from March start. The rally then lost steam as fears of a wider regional conflict in the Middle East eased. Gold has declined more than 2% so far in the week.
Among other precious metals, spot silver rose 0.6% to $27.44 per ounce.
"Like gold, there has been a shake-up at the highs, bullish fingers were burned, and another leg lower seems viable (for silver) after a retracement higher," Simpson said.
Spot platinum rose about 1% to $916.65 and palladium climbed 0.7% to $,1026.23.
(Reuters)
