i kept gold prices Despite the sharp decline it saw in the previous session, as strong US economic data dampened hopes for a turnaround Federal Reserve Bank Move quickly to a cash discount.
Bullion was trading below $2,300 an ounce in the early hours of trading in Asia, after ending Tuesday with a 2.1% decline, as investors focused on a reading that showed an acceleration in the broad index of US labor costs in the first quarter. The report underscored pessimism that the Federal Open Market Committee will take a more hawkish tone in announcing its decision on interest rates later on Wednesday.
Swaps markets show that only one rate cut is now fully priced in 2024, short of the three cuts the Fed said in December it was targeting. Higher interest rates are generally negative for non-yielding precious metals.
The dollar index jumped
On the other hand, the US dollar index jumped the most in more than two weeks yesterday, Tuesday. A stronger dollar makes the precious metal more expensive for most buyers.
Citi expects the price of gold to reach $3,000 due to strong demand
However, gold is still up more than 10% this year, amid strong demand from Asian markets – especially China – and conflicts in Ukraine and the Middle East. The World Gold Council said yesterday that demand from central banks recorded its strongest ever start to the first quarter.
Gold was little changed in spot transactions at $2,287.82 an ounce at 11:19 a.m. in Singapore, which had a public holiday along with many other countries in Asia. The Bloomberg Spot Dollar Index rose 0.1%, after gaining 0.6% on Tuesday. Silver stabilized, while palladium and platinum declined.
2024-05-01 03:09:11
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