2024-01-16T04:42:34+00:00
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/ Gold prices suffered slight losses during early trading on Tuesday, with the rise in the dollar and US Treasury bond yields, while investors await comments from a group of Federal Reserve (US Central) officials this week to clarify more about the path of interest rates.
The dollar index jumped to its highest level in ten days, making bullion less attractive to holders of other currencies, while yields on standard ten-year US Treasury bonds rose to hover near four percent levels.
The US Central Bank is expected to announce at the end of its meeting on January 30 and 31 that interest rates will remain unchanged.
Traders are betting on six interest rate cuts of 25 basis points each time this year, and expect the first cut to take place in March.
Low interest rates increase the demand for buying non-yielding bullion.
A group of Federal Reserve officials are scheduled to speak this week, including Christopher Waller, a member of the central bank’s Board of Governors, who will deliver a speech on the economic outlook before the Brookings Institution at 1600 GMT.
Elsewhere, European Central Bank officials tempered market expectations of rapid interest rate cuts this year.
The price of gold in spot transactions fell 0.2 percent to $2,050.35 per ounce, by 0201 GMT. US gold futures rose 0.1 percent to $2,054.10.
In terms of other precious metals, silver fell in spot transactions 0.2 percent to $23.15 per ounce, platinum fell 0.4 percent to $911.59, and palladium fell 0.3 percent to $968.96 per ounce.