Gold trades in tight range as market focuses on US economic data
GOLD prices were stuck in a tight range on Thursday (Apr 25) as investors looked to US economic data for further clarity on the Federal Reserve’s interest rate path.
Spot gold was flat at US$2,317.03 per ounce, as at 0118 GMT, trading in a US$4 range. Bullion’s March to April rally drove it up by nearly US$400 to an all-time high of US$2,431.29 on Apr 12.
US gold futures were down 0.4 per cent at US$2,329.00 per ounce.
Investors are waiting for the first-quarter US gross domestic product data due later in the day and March personal consumption expenditures report on Friday, after a hotter-than-expected March consumer price inflation reading pushed back rate-cut expectations.
Recent remarks from Federal Reserve officials hinted at no urgency to cut rates. Traders now expect the first Fed rate cut to come most likely in September.
Higher interest rates reduce the appeal of holding non-yielding gold.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
British multinational miner Anglo American said it had received an all-share buyout proposal from the world’s largest listed mining company, Australia’s BHP Group.
The depreciation of Asian currencies against the US dollar, and the steps monetary authorities may take to prevent further weakness, dominate the market landscape across Asia as the Bank of Japan gets its two-day policy meeting underway.
Spot silver rose 0.1 per cent to US$27.19 per ounce, platinum was up 0.1 per cent at US$903.20, while palladium fell 0.5 per cent to US$995.76. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
BHP’s biggest rivals sit on the sidelines of Anglo M&A drama
ExxonMobil to take 18 to 24 months to hit full stride with Pioneer purchase
Oil settles down on US jobs data, steepest weekly loss in three months
Glencore Group nears deal for Shell’s Singapore oil refinery
Opec+ may need to tackle oil capacity conundrum next month
Gold flat ahead of US payrolls data, set for second weekly drop