Gold is moving in a narrow range as traders await economic data

Gold rose on Thursday, supported by a weak dollar amid weak trading due to the holiday season, but prices moved in a narrow range as market participants await economic data in search of more guidance.

Gold in instant transactions rose 0.2 percent to $ 1818.40 an ounce by 0225 GMT. US gold futures rose 0.1 percent to $1,827.70.

The US currency index fell 0.2 percent, making gold cheaper for holders of other currencies.

US third quarter GDP and weekly jobless claims figures are due at 1330 GMT. Traders will also look at the PCE data due on Friday, looking for signs of inflation.

“Gold is holding in a range as trading is thin and investors are in a wait-and-see mode. PCE data will be important and if inflation continues to fall the dollar will weaken further and gold will get a little bit firmer,” said Edward Meir, analyst at ED&F Man Capital Markets.

The yellow metal is considered a hedge against inflation, but the rise in interest rates affected its attractiveness because it does not generate a return.

The Federal Reserve cut the pace of raising interest rates to 50 basis points in December, after four consecutive increases of 75 basis points. However, Fed Chairman Jerome Powell indicated that the Fed will rate more hikes next year.

Gold has gained about $200 since the metal fell to its lowest level in more than two years in late September, as expectations of a slowdown in rate hikes made the dollar less attractive.

As for other precious metals, silver rose in spot transactions by 0.2 percent to $ 24.00, and platinum increased by 0.9 percent to $ 1007.13, while palladium settled at $ 1,692.38.