2024-01-03T08:59:42+00:00
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/ Gold prices fluctuated in global markets today, Wednesday, as investors looked to the minutes of the latest US Federal Reserve monetary policy meeting scheduled to be released later in the day, to obtain more clarity about its next movements, while the rise in the dollar kept bullion gains under… control.
Gold futures are now declining by 0.1% to $2,071 per ounce, while spot gold contracts are rising by 0.2% to $2,063 per ounce.
On the other hand, the dollar index is relatively stable at 101.87 points.
The dollar index hovered near the highest level in more than a week that it reached in the previous session, supported by a jump in Treasury bond yields. A stronger dollar makes gold more expensive for holders of other currencies.
Traders doubled their bets on interest rate cuts in 2024, encouraged by slowing inflation and a dovish bias by the Federal Reserve at its monetary policy meeting last December.
Futures markets see a 70% chance of an interest rate cut of 25 basis points at the Federal Reserve meeting on March 20.
Low interest rates also reduce the opportunity cost of holding non-yielding bullion.
Investors are awaiting a series of US economic data this week, including the non-farm payrolls report on Friday, which may influence whether the Federal Reserve will start cutting interest rates next March as markets expect.
Silver rose in spot transactions by 0.1% to $23.66 per ounce, while platinum was little changed at $981.27. Palladium rose 0.3% to $1,084.40.