Gold stays rangebound with US economic data in focus
Investors remain cautious until new numbers give cues on inflation and Fed's stance on interest rates
22 December 2022 - 13:32
byArundhati Sarkar
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Bengaluru — Gold prices consolidated in a narrow range on Thursday as cautious investors awaited US economic data releases later in the day that may influence the Federal Reserve's interest-rate raising timeline.
Spot gold was little changed at $1,815.36 per ounce by 0930 GMT, while US gold futures held steady at $1,824.10.
While gold looks well set for now, some caution is required with it and it's hard to see it making significant further gains from its current levels, said Rupert Rowling, an analyst at Kinesis Money.
“It therefore would only take one or two disappointing data points for gold to come crashing back down again.”
Gold has risen about $200 since falling to a more than two-year low in late September as expectations about slower rate rises from the Fed dimmed the dollar's charm.
US GDP data for the third quarter and weekly US jobless claim numbers are due at 1330 GMT. Traders will also scan personal consumption expenditure (PCE) data, due on Friday, for cues on inflation.
“Gold is holding a range as trading is fairly thin and investors are in wait-and-see mode. The PCE data will be important; if inflation continues to come down, the dollar will further weaken and gold will get a steadier tone,” said Edward Meir, analyst with ED&F Man Capital Markets.
The US dollar index eased, making precious metals less expensive for holders of other currencies.
European Central Bank policymakers Luis de Guindos and Yannis Stournaras joined a chorus of eurozone central bankers supporting more interest rates increases at the pace of last week's hike to tame inflation.
Though bullion is seen as an inflation hedge, rising interest rates dent its appeal.
Elsewhere, spot silver fell 0.8% to $23.79 per ounce, while platinum edged 0.1% higher to $999.47.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold stays rangebound with US economic data in focus
Investors remain cautious until new numbers give cues on inflation and Fed's stance on interest rates
Bengaluru — Gold prices consolidated in a narrow range on Thursday as cautious investors awaited US economic data releases later in the day that may influence the Federal Reserve's interest-rate raising timeline.
Spot gold was little changed at $1,815.36 per ounce by 0930 GMT, while US gold futures held steady at $1,824.10.
While gold looks well set for now, some caution is required with it and it's hard to see it making significant further gains from its current levels, said Rupert Rowling, an analyst at Kinesis Money.
“It therefore would only take one or two disappointing data points for gold to come crashing back down again.”
Gold has risen about $200 since falling to a more than two-year low in late September as expectations about slower rate rises from the Fed dimmed the dollar's charm.
US GDP data for the third quarter and weekly US jobless claim numbers are due at 1330 GMT. Traders will also scan personal consumption expenditure (PCE) data, due on Friday, for cues on inflation.
“Gold is holding a range as trading is fairly thin and investors are in wait-and-see mode. The PCE data will be important; if inflation continues to come down, the dollar will further weaken and gold will get a steadier tone,” said Edward Meir, analyst with ED&F Man Capital Markets.
The US dollar index eased, making precious metals less expensive for holders of other currencies.
European Central Bank policymakers Luis de Guindos and Yannis Stournaras joined a chorus of eurozone central bankers supporting more interest rates increases at the pace of last week's hike to tame inflation.
Though bullion is seen as an inflation hedge, rising interest rates dent its appeal.
Elsewhere, spot silver fell 0.8% to $23.79 per ounce, while platinum edged 0.1% higher to $999.47.
Palladium rose 1.7% to $1,721.21.
Reuters
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