Gold Prices Stabilize Near Lowest Levels in Two Weeks
The price of gold stabilized near its lowest level in approximately two weeks during early trading on Tuesday, affected by the rise in the dollar and Treasury bond yields. Traders had previously reduced their expectations for aggressive interest rate cuts by the US Federal Reserve this year.
U.S. services sector growth rebounded in January, with new orders increasing and hiring picking up. However, suppliers appeared to be lagging behind, leading to an 11-month high in input prices.
Two Federal Reserve officials emphasized that the central bank doesn’t need to be overly concerned about the recent stronger-than-expected economic growth and employment figures, suggesting a possible delay in any interest rate cuts. This sentiment was echoed by Chairman Jerome Powell, who emphasized a cautious approach in assessing the need for rate adjustments.
The dollar index remained near a three-month high, making gold more expensive for holders of other currencies. Benchmark 10-year Treasury yields remained above 4 percent.
Investors await comments from various Federal Reserve spokespersons in the coming days for further insight into the potential timing of a rate cut.
Spot gold prices held steady at $2,025.24 per ounce by 0216 GMT, having touched their lowest point since January 25 in the previous session.
U.S. gold futures declined by 0.1 percent to $2,041.30 an ounce.
Other precious metals saw mixed performance. Silver in spot transactions fell 0.1 percent to $22.33 per ounce, while palladium rose 0.4 percent to $952.44 and platinum rose 0.2 percent to $898.53 per ounce.