Share

Gold prices recover as markets await key U.S. economic data

Gold could remain between $2,300 and $2,350 unless a fresh catalyst emerges
Gold prices recover as markets await key U.S. economic data
A stronger greenback and elevated bond yields typically diminish the appeal of dollar-priced bullion

Gold prices saw slight gains on Wednesday but remained within a narrow range as investors awaited further clarity on the Federal Reserve‘s interest rate path from upcoming U.S. economic data.

Spot gold saw a 0.04 percent increase to $2,325.5 per ounce, as of 5:24 GMT. However, U.S. gold futures saw a 0.13 percent decline to $2,339.10.

Key U.S. economic data

Analysts suggested that a false break of $2,300 on Tuesday indicates that gold prices are likely to remain rangebound ahead of key events such as the U.S. gross domestic product (GDP) data on Thursday and the personal consumption expenditures (PCE) report on Friday. They expect gold to trade between $2,300 and $2,350 unless a fresh catalyst emerges.

Resilient U.S. economic data could lead to potential upside surprises, potentially lifting the dollar and U.S. yields further. A stronger greenback and elevated bond yields typically diminish the appeal of dollar-priced bullion for other currency holders and as an investment option compared to debt, which leads to a decline in gold prices.

Read: Oil prices stabilize as focus shifts to U.S. economy, interest rates

Market trends

Gold prices surged to an all-time high of $2,431.29 on April 12 but lost momentum as fears of a wider regional conflict in the Middle East eased. The current week has seen a decline of more than 2 percent in gold prices. Today, spot silver rose by 0.43 percent to $27.40 per ounce, spot platinum rose 0.99 percent to $916.60 and palladium climbed 1.04 percent to $1,029.91.

Similar to gold, there has been a recent shake-up in silver prices, potentially leading to further downward movement after a retracement higher.

For more news on markets, click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.