Gold prices rose today, Tuesday, as the US dollar fell, while investors await interest rate decisions from a number of central banks and important economic data from the United States this week.
Gold rose in spot trading by 0.5% to $2030.64 per ounce by 05:45 GMT. Similarly, US gold futures increased by 0.5% to $2031.90.
According to Reuters, the dollar index decreased by 0.2%, making gold priced in it more attractive to holders of other currencies.
According to Tim Water, senior market analyst at KCM Trade, gold will continue to fluctuate until it receives indications about the timing of the Federal Reserve’s first decision to lower interest rates.
Last week, officials at the US Federal Reserve stated that the bank needs more inflation data before making any decision to lower interest rates.
Reducing the interest rate minimizes the cost of the alternative opportunity for holding non-yielding alloys.
Investors are eagerly awaiting the release of the Purchasing Managers’ Index data in the United States, which is scheduled for Wednesday, as well as the estimates of fourth-quarter gross domestic product, which is set to be released on Thursday, along with the expected personal consumption expenditures data on Friday. The US Federal Reserve is also scheduled to hold its next meeting on January 30-31.
As for other precious metals, silver rose 1.1% in spot trading to $22.33 per ounce, platinum increased by 1.1% to $902.36, and palladium climbed 0.9% to $944.47.
