2024-01-26T06:09:06+00:00
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/ Gold prices are preparing for the second consecutive weekly decline in the face of the flexibility of the US currency. The economy kept the dollar near multi-week highs, while focus turned to the key inflation reading due later in the day.
There was little change in gold in spot transactions at $2,021.28 per ounce by 0415 GMT.
Rose gold futures rose 0.2 percent to $2,021.20. Both have lost 0.4% so far this week.
Official data showed that the economy grew faster than expected in the fourth quarter as inflationary pressures eased amid strong consumer spending, reflecting signs that the economy is starting 2024 on a strong note, according to a Standard & Poor’s Global report earlier this week.
But the metal trimmed its weekly losses with gains of 0.4 percent on Thursday, with Treasury bond yields declining due to waning inflationary pressures.
The dollar index (.DXY) rose 0.2% over the week, hovering near a six-week high, making the metal less attractive to holders of other currencies.
Markets broadly expect the US Federal Reserve to hold steady on interest rates at its policy meeting in January. The meeting will be held on 30-31, but attention will largely be on comments from Chairman Jerome Powell.
Traders have postponed their first rate cut prediction and are now placing a 93% probability of a rate cut in May, according to LSEG IRPR’s interest rate probability app, opens a new tab.
The focus now turns to the Fed’s preferred measure of inflation – personal consumption expenditures data – due at 1330 GMT.
Lower interest rates reduce the opportunity cost of holding bullion.
Silver in spot transactions fell 0.2 percent to $22.87 per ounce, platinum settled at $891.90, and palladium fell 0.5 percent to $935.89.