Gold prices ticked up on Tuesday as the dollar eased off a six-week high, while traders waited for more economic data to gauge the U.S. Federal Reserve’s rate-hike strategy.
FUNDAMENTALS
Spot gold was up 0.1% at $1,843.23 per ounce, as of 0046 GMT. U.S. gold futures firmed 0.1% to $1,851.80.
The dollar index was parked below recent peaks, making greenback-priced bullion less expensive for buyers holding other currencies.
Investors are now awaiting minutes of the Fed’s latest policy meeting due to be released on Wednesday. Money markets expect the U.S. central bank to raise benchmark rates above 5% by May, with a peak in rates seen at 5.3% in July.
Higher interest rates increase the opportunity cost of holding zero-yield bullion.
The U.S. core personal consumption expenditure (PCE) data due later this week is also on investors’ radar.
The European Central Bank should keep raising interest rates beyond March and the rate peak, which should be stuck to for some time, could be reached over the summer, Finnish central bank chief Olli Rehn told a German newspaper.
This report’s information was first seen on ZAWYA; to read more, click this link.
You must be logged in to post a comment.