Gold rose slightly today, Tuesday, as it was capped by a tight range as investors refrained from taking large positions ahead of US economic data that could influence the Federal Reserve’s (US central bank) interest rate strategy.
The price of gold rose 0.1% to $1,842.37 an ounce (oz) at 02:45 GMT, with it trading in a four-dollar range. US gold futures rose 0.1%, also to $1,852.10.
According to Reuters, high interest rates discourage investors from investing in unprofitable assets such as gold.
Gold prices reached their highest level since April 2022 this month but have since lost about $120 after a series of economic data showed signs of resilience in the US economy and labor market shortages, raising concerns that interest rates will remain high. over a longer period.
The minutes of the Fed’s last political meeting will be published tomorrow, Wednesday. Financial markets expect the bank to raise benchmark interest rates above 5% by May and to a peak of 5.3% in July.
Investors are also looking forward to key US personal consumption expenditure data, which the Federal Reserve prefers to use to measure inflation, as well as GDP data due this week.
The dollar index rose 0.1%, making US dollar-denominated bars more expensive for buyers holding other currencies.
In other precious metals, silver rose 0.1% to $21.76 an ounce, platinum rose 0.2% to $928.26 and palladium rose 0.2% to $1507.90.
