NEW YORK: Gold steadied on Monday, helped by a weaker dollar, although prices were stuck in a tight range as traders turned their attention to this week’s economic data that may influence the US Federal Reserve’s next policy decision.
Spot gold was mostly flat at $1,983.06 per ounce by 11:25 a.m. EDT (1525 GMT) while US gold futures were up 0.2% to $1,993.60.
Prices briefly turned positive after the Dallas Fed’s report showed manufacturing activity in Texas contracted in April, highlighting the economic toll of the Fed’s rate tightening cycle.
“This market is treading water in the short term, waiting on its next piece of economic data that could potentially jolt it in one direction or the other,” said David Meger, director of metals trading at High Ridge Futures.
The US dollar eased 0.3%, making greenback-priced bullion more appealing to overseas buyers.
Gold dropped below $2,000 last week on Fed officials’ hawkish remarks and after surveys showing US and euro zone business activity gathered pace in April.
Markets now expect an 89% chance of a 25 basis point Fed hike at its May 2 to 3 policy meeting, according to the CME FedWatch tool.
Comments
Comments are closed for this article.