BENGALURU: Gold prices edged higher on Thursday, helped by a slight fall in the dollar, while investors awaited more US economic data and the European Central Bank’s (ECB) policy decision.
Spot gold were up 0.2% to $2,015.51 per ounce by 1241 GMT. US gold futures remained unchanged at $2,015.70. The dollar index slipped 0.1%, making greenback-priced gold more appealing to holders of other currencies.
“The rate cut expectations have somewhat slowed as we came into the year with elevated or high expectations, and that has left the markets exposed to disappointments,” said Ole Hansen, Saxo Bank’s head of commodity strategy.
“For now, gold is being left a little bit on its own because the market simply needs more data to judge whether the market is at risk of a deeper correction or whether this level around the $2,000 is strong enough to support the market in the short term.” Hansen added. According to the CME FedWatch Tool, markets widely expect the Federal Reserve to hold rates unchanged at its policy meeting on Jan. 30-31 and have pared back the timing of the first interest rate cut.
The ECB is scheduled to announce its policy decision at 1315 GMT. While the central bank is expected to keep rates steady, investors will be looking out for comments from President Christine Lagarde. The first reading of fourth-quarter US GDP is due at 1330 GMT and the personal consumption expenditure data on Friday are also on the radar, for more cues on the Fed’s rate cut plans.
Data on Wednesday showed that the US economy began 2024 on a positive note, with economic activity increasing in January and inflation starting to ease. Spot silver rose 0.9% to $22.85 per ounce, platinum dipped 0.2% to $897.08, and palladium edged up 0.1% to $964.01.
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