Gold little changed as US data zooms into focus
Gold prices were little changed on Tuesday as investors shied away from making big bets ahead of U.S. economic data that could determine the Federal Reserve’s rate-hike strategy.
Spot gold was steady at $1,988.27 per ounce by 0854 GMT, while U.S. gold futures was unchanged at $1,999.40.
Market focus is on the U.S. consumer confidence report scheduled at 1400 GMT, while core personal consumption expenditures index and GDP quarterly growth rate are due later this week.
“If consumer confidence is positive then the market is seeing a lesser chance of the U.S. economy entering a recession, which is negative for gold,” said Peter Fertig, an analyst with Quantitative Commodity Research.
“Restrictive monetary policy from the Fed might limit upside potential for gold in the near-term.”
Investors are expecting an 88% chance of a 25-basis-point hike by the U.S. central bank at its May 2-3 policy meet.
“We believe prices at $2,000 per ounce or above are only justified in case of a broad-based and longer-lasting U.S. recession, accompanied by a return of safe-haven seekers,” Carsten Menke, head of Next Generation Research at Julius Baer, wrote in a note.
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