Gold trades in tight range as market focuses on US economic data

Thursday,   25-Apr-2024   08:14 AM (IST)

Gold prices were stuck in a tight range on Thursday as investors looked to US economic data for further clarity on the Federal Reserve’s interest rate path. Spot gold was flat at US$2,317.03 per ounce, as at 0118 GMT, trading in a US$4 range. Bullion’s March to April rally drove it up by nearly US$400 to an all-time high of US$2,431.29 on Apr 12. US gold futures were down 0.4 per cent at US$2,329.00 per ounce. Investors are waiting for the first-quarter US gross domestic product data due later in the day and March personal consumption expenditures report on Friday, after a hotter-than-expected March consumer price inflation reading pushed back rate-cut expectations. Recent remarks from Federal Reserve officials hinted at no urgency to cut rates. Traders now expect the first Fed rate cut to come most likely in September. Higher interest rates reduce the appeal of holding non-yielding gold. British multinational miner Anglo American said it had received an all-share buyout proposal from the world’s largest listed mining company, Australia’s BHP Group. The depreciation of Asian currencies against the US dollar, and the steps monetary authorities may take to prevent further weakness, dominate the market landscape across Asia as the Bank of Japan gets its two-day policy meeting underway. Spot silver rose 0.1 per cent to US$27.19 per ounce, platinum was up 0.1 per cent at US$903.20, while palladium fell 0.5 per cent to US$995.76.