Gold little changed as focus shifts to US data

GOLD PRICES steadied on Wednesday as risk premiums over tensions in the Middle East eased, while investors strapped in for US economic data due later in the week that could offer clues to the US Federal Reserve’s interest rate path.

Spot gold was flat at $2,322.09 per ounce by 1:45 p.m. ET (1745 GMT), after having hit its lowest since April 5 in the previous session. US gold futures settled 0.2% lower at $2,338.40. Spot silver dipped 0.2% to $27.23. Bullion prices have fallen over $100 after hitting a record high of $2,431.29 on April 12.

The dollar index firmed 0.2%, making greenback-priced bullion less attractive to overseas buyers.

“The gold and silver market is seeing correction with a deescalation in the Middle East conflict. The key question is if these corrections will turn into near-term price downtrend that would signal market tops are in place,” said Jim Wyckoff, senior analyst at Kitco Metals.

The US gross domestic product data is due on Thursday and the Personal Consumption Expenditures report on Friday.

Traders now expect the first Fed rate cut to come, most likely in September. Higher interest rates reduce the appeal of holding non-yielding gold.

In the long term, gold will rise further, with 2024 being an election year, persistent geopolitical conflict and increasing US debt, said Jonathan Rose, Genesis Gold Group CEO.

Platinum lost 0.1% to $906.95, while palladium plunged 1.7% lower to $1,002.42. —