Gold prices fell globally during these moments of trading, today, Wednesday, as this coincides with the rise of the US dollar index.
Meanwhile, traders are awaiting key inflation data and comments from Federal Reserve officials this week to determine when the central bank is likely to cut interest rates.
The yield on the 10-year US Treasury note fell to 4.2914% from 4.3150% on Tuesday, while the dollar index is rising at this point in today's trading, as it is moving near the 104-point level.
“The outlook is that the PCE report, coupled with the upcoming GDP data, could act as catalysts for gold to break out of its current trading range in the $2020-2050 area,” said Luca Santos, analyst at ACY Securities.
Data on Tuesday showed that U.S. durable goods orders posted their biggest drop in nearly four years in January. U.S. consumer confidence also fell in February.
The Conference Board survey revealed that the US consumer confidence index fell to 106.7 points in February, from 110.9 points in January, and the short-term consumer expectations index fell to 79.8 points in February, from 81.5 points, indicating a possible recession during the coming year.
Markets are now awaiting the release of the US Federal Reserve’s preferred inflation measure – the core personal consumption expenditures price index – on Thursday, along with revised US fourth-quarter GDP data due at 16:30 Mecca time today.
Meanwhile, Federal Reserve Governor Michelle Bowman stressed on Tuesday the importance of the US central bank being patient about starting the monetary easing process, in light of the upside risks to inflation.
At least nine other Fed officials are scheduled to speak this week.
Traders are betting on a 63% chance of a quarter-point (25 basis points) rate cut in June, according to the US interest rate tracker available on the Investing Saudi website.
Lower interest rates make it more attractive to hold non-yielding bullion.
On the technical front, spot gold could retest support at $2,025 per ounce, and a break below could be followed by a drop to $2,015 per ounce, according to Reuters market analyst Wang Tao.
Gold at settlement yesterday
Gold futures prices rose at the settlement of trading on Tuesday, with the evaluation of economic data that showed a decline in US consumer confidence amid expectations of a recession in the next 12 months.
At settlement, April gold futures rose 0.25%, or $5.2, to $2,044.1 an ounce, after touching $2,049.1.
Gold and dollar now
Gold futures fell about 0.32% to $2,037 an ounce.
Spot gold futures fell 0.1% to $2,028 an ounce.
On the other hand, the US dollar index rose by 0.18% to 103.950 points.
Other minerals
Spot platinum fell 0.1 percent to $887.20 an ounce, while palladium fell 0.5 percent to $931.57 an ounce, while silver rose 0.1 percent to $22.45 an ounce.
