Gold Prices Rebound from Three-Week Low

On Tuesday, gold prices rebounded from a three-week low, finding support in a weakening dollar following an official US report indicating that consumers anticipate lower inflation. The prospect of a Federal Reserve interest rate cut fueled optimism in the precious metal market.

Gold experienced an immediate uptick of 0.2 percent, reaching $2,032.73 per ounce by 0458 GMT, recovering from its lowest level since December 18 recorded on Monday. Meanwhile, US gold futures saw a 0.3 percent increase, settling at $2,038.90 an ounce.

A report from the Federal Reserve Bank of New York on Monday revealed consumer expectations of a decline in inflation, coupled with anticipated decreases in income and spending in the coming years. Such sentiments raised speculation that the Federal Reserve might consider interest rate cuts.

The allure of gold, a non-yielding asset, is enhanced in environments of low interest rates, as it reduces the opportunity cost of holding the precious metal.

The dollar index experienced a decline, one day after its largest daily drop in two weeks, further supporting the upward movement in gold prices.

Turning to other precious metals, silver in spot transactions registered a 0.1 percent increase, reaching $23.11 per ounce. Platinum showed a notable 0.3 percent jump, settling at $948.42, while palladium demonstrated a 0.6 percent rise, reaching $1,003.46. The positive movement across the precious metals spectrum underscores the broader market response to the changing economic landscape.