BENGALURU: Gold dipped slightly on Wednesday, as a stronger dollar weighed on prices, while investors awaited US data for clues on potential rate cuts by the Federal Reserve.
Spot gold dropped 0.19% to $2,309.29 per ounce by 1335 GMT. US gold futures for June delivery fell 0.3% to $2,317.00 per ounce. The dollar edged up 0.15% on renewed bets of rate cuts this year.
A stronger dollar makes gold unattractive for foreign currency holders.
“Market is likely to wait for a catalyst for additional upside, whereas the downside does appear to be capped by the limited participation from money managers,” said Daniel Ghali, commodity strategist at TD Securities.
Investors are now awaiting the University of Michigan’s consumer sentiment reading on Friday and comments from a slew of Federal Reserve officials this week. The US consumer price index data is due on May 15.
After recent weak US jobs data, money markets are pricing in two Fed rate cuts this year and around 40 bps of monetary easing. Lower interest rates decrease the opportunity cost of holding non-yielding bullion. Spot silver fell 0.1% to $27.24 per ounce.
Platinum fell 1.2% to $964.65 per and palladium dipped 2.34% to $948.50 per ounce.
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