2024-01-24T05:08:16+00:00
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/ Gold prices fell on Wednesday, as hawkish comments from Federal Reserve officials and the US currency rose. The data dampened hopes for early interest rate cuts, while investors are awaiting a series of economic reports this week for more clarity on the path of interest rates.
By 0327 GMT, spot gold was down 0.2 percent at $2,024.46 an ounce.
Gold futures were unchanged at $2,025.50, according to Reuters.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
The dollar index (.DXY) fell 0.1%, but remained hovering near a six-week high hit on Tuesday. The yield on the benchmark U.S. 10-year Treasury note fell, but remained above 4%.
In broader financial markets, Asian stocks rose on optimism that Chinese authorities will provide support to its stock markets, which have fallen to multi-year lows.
Market focus is on the US market. Flash PMI report is due at 1445 GMT later today, Q4 GDP estimates on Thursday and PCE data on Friday.
Traders are pricing in five quarter-point rate cuts from the Fed in 2024, down from six cuts two weeks ago. The first cut came in March, and the first is now expected in May with an 89% chance, according to LSEG’s interest rate probability app IRPR, Opens a new tab.
Spot silver fell 0.2% to $22.38 an ounce, platinum fell 0.1% to $899.21 and palladium fell 0.5% to $943.23.