Gold prices were steady during these moments of trading, today, Wednesday, as investors looked to the minutes of the latest Federal Reserve monetary policy meeting scheduled for release later in the day to obtain more clarity about its next movements, while the rise in the dollar kept bullion gains under control.
The dollar index hovered near the highest level in more than a week reached in the previous session, supported by a jump in Treasury bond yields. A stronger dollar makes gold more expensive for holders of other currencies.
Traders doubled their bets on interest rate cuts in 2024, encouraged by slowing inflation and a dovish tilt by the Federal Reserve at its December monetary policy meeting.
Futures markets see a 70% chance of a 25 basis point rate cut at the Fed's March 20 meeting, according to Investing Saudi Arabia's Fed rate tracker.
Low interest rates reduce the opportunity cost of holding non-yielding bullion.
Investors are awaiting a series of US economic data this week, including Friday's non-farm payrolls report, which could influence whether the Federal Reserve will start cutting interest rates in March as markets expect.
The SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.06% to 878.54 tons on Tuesday from 879.11 tons on Friday.
Gold at settlement yesterday
Gold futures prices trimmed their gains when settling trading yesterday, Tuesday, after the yellow metal ended 2023 with its first annual increase in 3 years, with expectations of global central banks starting a major cycle of reducing interest rates.
Upon settlement, gold futures prices for February delivery rose approximately 0.1%, or $1.6, at $2,073.4 per ounce, after touching $2,088.1 during trading.
Gold and dollar now
Gold futures are now down 0.1% to $2,071 an ounce.
Meanwhile, spot gold contracts rose by about 0.2% to $2,063 per ounce.
On the other hand, the dollar index is relatively stable at 101.87 points.
other metals
Silver rose in spot transactions 0.1 percent to $23.66 per ounce, while platinum was little changed at $981.27. Palladium rose 0.3 percent to $1,084.40.
