Gold fell as the dollar rose, as investors awaited US data

Gold prices fell on Thursday, January 26, with the rise of the dollar, while investors await US economic data that could provide clues about whether the Federal Reserve will slow down the pace of raising interest rates.

Spot gold fell 0.5% to $1936.97 an ounce, after hitting its highest level since April 2022 at $1949.09, and US gold futures fell 0.3% to $1937.20.

The dollar index rose slightly, but remained near an 8-month low.

Investors are awaiting the announcement of US GDP estimates for the fourth quarter, as well as the publication of personal consumption expenditures data in the United States tomorrow, before the Federal Reserve’s policy meeting scheduled for January 31 and February 1. Traders will also look at the US weekly jobless claims data, which is due in June
later today.

Investors widely expect the Fed to slow rate hikes to 25 basis points from 50 basis points last December.

Reducing interest rate hikes tends to support gold prices, as it reduces the opportunity cost of owning the non-yielding precious metal.

As for other precious metals, spot silver fell 1.2% to $23.6137 an ounce, platinum fell 0.9% to $1030.25, and palladium fell 1.2% to $1677.40.