gold prices Shares fell on Wednesday, retreating from a nearly nine-month peak in the previous session, as some investors booked profits ahead of US economic data that could pave the way for a tightening of the Federal Reserve’s policy.
spot gold Oil fell 0.3% to $1,931.04 an ounce by 0730 GMT after hitting its highest level since late April on Tuesday. us gold futures were down 0.1% at $1,933.50.
Harish V, Head of Commodity Research, Geojit Financial Services, said, “Gold prices declined mainly due to technical correction after hitting higher levels. A stable dollar also influenced the sentiment.”
Markets’ focus is now on fourth-quarter US GDP data due on Thursday, which could set the tone for the Fed’s Jan. 31-Feb. 1 policy meeting.
If the US economy is slowing down and the Fed slows down its tightening pace soon and cuts interest rates, gold could rise, said Ilya Spivak, Head of Global Macro at TastyLive.
“However, for the price to surpass the $2,000 level, the US Dollar will need to continue weakening,” he added.
Most investors expect the Fed to raise rates by 25 basis points (bps) next week. The US central bank slowed its tightening pace to 50 bps after four straight 75-bp hikes last month.
With lower rates translating into lower returns on interest-bearing assets like government bonds, investors may prefer zero-yield gold.
According to Reuters technical analyst Wang Tao, gold is likely to move in the range of $1,956-$1,969.
Swiss gold exports to countries including China, Turkey, Singapore and Thailand are set to reach multi-year highs in 2022, data showed on Tuesday.
Among other precious metals, silver fell 0.4% to $23.58 an ounce, while platinum rose 0.1% to $1,057.75.
Palladium fell 0.3% to $1,737.63.
spot gold Oil fell 0.3% to $1,931.04 an ounce by 0730 GMT after hitting its highest level since late April on Tuesday. us gold futures were down 0.1% at $1,933.50.
Harish V, Head of Commodity Research, Geojit Financial Services, said, “Gold prices declined mainly due to technical correction after hitting higher levels. A stable dollar also influenced the sentiment.”
Markets’ focus is now on fourth-quarter US GDP data due on Thursday, which could set the tone for the Fed’s Jan. 31-Feb. 1 policy meeting.
If the US economy is slowing down and the Fed slows down its tightening pace soon and cuts interest rates, gold could rise, said Ilya Spivak, Head of Global Macro at TastyLive.
“However, for the price to surpass the $2,000 level, the US Dollar will need to continue weakening,” he added.
Most investors expect the Fed to raise rates by 25 basis points (bps) next week. The US central bank slowed its tightening pace to 50 bps after four straight 75-bp hikes last month.
With lower rates translating into lower returns on interest-bearing assets like government bonds, investors may prefer zero-yield gold.
According to Reuters technical analyst Wang Tao, gold is likely to move in the range of $1,956-$1,969.
Swiss gold exports to countries including China, Turkey, Singapore and Thailand are set to reach multi-year highs in 2022, data showed on Tuesday.
Among other precious metals, silver fell 0.4% to $23.58 an ounce, while platinum rose 0.1% to $1,057.75.
Palladium fell 0.3% to $1,737.63.