Gold steady as investors eye U.S. data for economic cues

Gold prices held steady around the key $2,000-per-ounce mark on Wednesday as investors maintained a cautious stance and sought more clarity on the Federal Reserve’s rate-hike trajectory from upcoming U.S. economic data.

FUNDAMENTALS

Spot gold held its ground at $1,999.09 per ounce by 0042 GMT. U.S. gold futures rose 0.3% to $2,010.20.

The dollar index eased 0.1%, making gold more attractive for buyers holding other currencies.

Data on Tuesday showed U.S. consumer confidence dropped to a nine-month low in April as worries about the future mounted, further heightening the risk that the economy could fall into recession this year.

Sales of new U.S. single-family homes jumped to a one-year high in March, likely as a retreat in mortgage rates boosted demand.

The U.S. central bank’s rate-setting Federal Open Market Committee will meet on May 2-3.

Although gold is considered a hedge against inflation and economic uncertainty, higher interest rates dim the non-yielding asset’s appeal.

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