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Gold prices experienced a slight decline on Thursday as the dollar strengthened, although bullion remained near record highs. Traders were eagerly awaiting more US economic data, which could influence expectations regarding a potential mid-year interest rate cut.
Price Movements
By 0426 GMT, gold in spot transactions fell by 0.2 percent to $2,171.05 per ounce, while US gold futures dropped by 0.2 percent to $2,175.40. The dollar index saw a 0.1 percent increase, making gold comparatively more expensive for holders of other currencies.
Awaiting US Economic Data
Investors were particularly focused on forthcoming US retail sales data, producer price index reports, and unemployment claims to gauge the state of the US economy. The outcome of these data releases could influence the Federal Reserve’s decision regarding potential interest rate adjustments in June.
Market Analyst Insights
Kelvin Wong, chief market analyst for the Asia-Pacific region at OANDA, noted that while gold prices experienced a slight decline following the release of US CPI data, it did not significantly alter the market’s view on US monetary policy. Wong emphasized that the outcome of the producer price index data could provide further insight, potentially offering support to gold prices.
Federal Reserve Policy Meeting Expectations
Traders were awaiting the Federal Reserve’s latest forecasts at its upcoming policy meeting next week. Speculation had previously suggested expectations of interest rate cuts totaling three-quarters of a percentage point in 2024.
Performance of Other Precious Metals
In addition to gold, other precious metals experienced slight declines. Platinum in spot transactions fell by 0.3 percent to $935.50 per ounce, while palladium dropped by 0.3 percent to $1,056.24. Similarly, the price of silver decreased by 0.3 percent to $24.95 after reaching its highest level in over four months earlier in the session.
As investors continue to monitor economic data and central bank policies, the outlook for gold and other precious metals remains subject to market sentiment and developments in the broader economy.
