Gold prices rose on Thursday as a softer dollar rekindled some of bullion’s appeal for overseas buyers, while investors braced for a host of US economic data ahead of a crucial Federal Reserve policy meeting next week.
Spot gold rose 0.48% to $1,999.01 per ounce by 448 GMT, while US gold futures climbed 0.6% to $2,008.10.
The dollar index eased 0.1% on the day, set for a second session of decline.
Gold is treading waters right now, as investors keep an eye on US debt ceiling talks, and the Fed meeting next, that could offer some ideas on what to expect for the rest of the year, said Edward Meir, a metals analyst at Marex.
The US House of Representatives on Wednesday narrowly passed a bill to raise the government’s $31.4 trillion debt ceiling.
Meanwhile, First Republic Bank’s market value plunged again on Wednesday as investors waited to see if it would be able to find buyers for assets and engineer a turnaround without government support.
Therefore, given the “uneasy tone with the banking situation” and the “debt ceiling uncertainties, gold will probably be more sensitive to the upside than to the downside,” Meir said.
Safe-haven gold scaled an over one-year peak at $2,048.71 in mid-April, as the banking crisis unfolded and weak US economic readings bolstered bets for a pause in interest rate hikes.
Brian Lan, managing director at gold dealer GoldSilver Central in Singapore said, a lot is hinged on the Fed’s interest rate decision in May, and gold could see more volatility due to the dollar.
Gold pauses as traders hunker down for economic cues
Traders will now scan the US quarterly GDP figures and weekly jobless claims due at 1230 GMT. Data on Wednesday showed US business spending on equipment weakened in March as demand for goods slowed.
Elsewhere, spot silver rose 0.7% to $25.05 per ounce, platinum added 0.3% to $1,093.36, and palladium gained 0.5% to $1,519.47.
Comments
Comments are closed.