2024-01-26T06:09:06+00:00
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/ Gold prices are set for a second straight weekly decline in the face of the resilience of the US currency. The economy kept the dollar near its highest levels in several weeks, while the focus shifted to the main inflation reading due later today.
Spot gold was little changed at $2,021.28 an ounce by 0415 GMT.
Rose gold futures rose 0.2% to $2,021.20. Both have lost 0.4% so far this week.
Official data showed 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 report by S&P Global earlier this week.
But the metal pared its weekly losses with a 0.4 percent gain on Thursday, as Treasury yields fell on easing inflationary pressures.
The dollar index (.DXY) rose 0.2% on the week, hovering near a six-week high, making the metal less attractive to holders of other currencies.
Markets are widely expecting the US Federal Reserve to hold rates steady at its January policy meeting. The meeting will be held on January 30-31, but much of the attention will be on comments from Chairman Jerome Powell.
Traders have pushed back their initial rate cut forecast and are now pricing in a 93% chance of a rate cut in May, according to LSEG’s interest rate probability app IRPR, opens in a new tab.
Focus now turns to the Fed’s preferred inflation gauge – personal consumption expenditures data – due at 1330 GMT.
Lower interest rates reduce the opportunity cost of holding bullion.
Spot silver fell 0.2 percent to $22.87 an ounce, platinum was flat at $891.90 and palladium fell 0.5 percent to $935.89.