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Gold prices saw a slight increase on Wednesday, supported by a weaker dollar and the market’s anticipation of key data releases, including the Federal Reserve meeting minutes and the private sector jobs report in the United States. These releases are crucial for gaining insights into potential changes in interest rates.
In spot transactions, gold rose by 0.1 percent to $2,061.78 per ounce as of 07:41 GMT. Traders have increased their expectations for interest rate cuts in 2024, given the slowdown in inflation and the Fed’s inclination towards easing, as indicated in the December monetary policy meeting.
Gold experienced a 13 percent gain in 2023, marking its first annual increase since 2020. The appeal of gold tends to rise when interest rates are low, as it reduces the opportunity cost of holding the precious metal.
Investors are eagerly awaiting the release of the minutes from the Federal Reserve’s monetary policy meeting, scheduled for 19:00 GMT. Additionally, a series of US economic data, including the non-farm payrolls report, is expected later in the week.
In the broader spectrum of precious metals, silver declined by 0.4 percent to $23.55 per ounce, platinum rose by 0.1 percent to $982.52 per ounce, and palladium saw a 1.3 percent increase to $1,095.21.
