Gold prices edged up on Tuesday as the dollar weakened, while investors awaited U.S. economic data amid hopes of slower interest rate hikes by the Federal Reserve.
Spot gold rose 0.2% to $1,935.69 per ounce, as of 0208 GMT. U.S. gold futures were up 0.4% at $1,936.00.
The dollar index dipped 0.2%. A weaker greenback makes dollar-priced bullion more affordable for many buyers.
Investors are now focused on the U.S. fourth quarter GDP growth estimates due on Thursday.
“Any signs of a weaker U.S. economy will be taken as a reason for the Fed to tighten less aggressively, and that could support gold, which would also take in safe haven flows,” said Matt Simpson, a senior market analyst at City Index.
“Disappointing numbers likely to help gold climb above $1,960, but might not break through $2,000 in its first attempt, given the significance of the number.”
Traders are mostly pricing in a 25 basis point (bp) rate hike by the Fed at its Jan. 31-Feb. 1 policy meeting, after slowing its pace to 50 bps in December, following four straight 75-bp hikes.
This report’s information was first seen on Zawya.com; to read more, click this link.
