Gold dipped slightly on Wednesday, as a stronger dollar weighed on prices, while investors awaited U.S. data for clues on potential rate cuts by the Federal Reserve.
Spot gold dropped 0.19% to $2,309.29 per ounce by 1335 GMT. U.S. gold futures for June delivery fell 0.3% to $2,317.00 per ounce.
The dollar edged up 0.15% on renewed bets of rate cuts this year. A stronger dollar makes gold unattractive for foreign currency holders.
“Market is likely to wait for a catalyst for additional upside, whereas the downside does appear to be capped by the limited participation from money managers,” said Daniel Ghali, commodity strategist at TD Securities.
Investors are now awaiting the University of Michigan’s consumer sentiment reading on Friday and comments from a slew of Federal Reserve officials this week. The U.S. consumer price index data is due on May 15.
After recent weak U.S. jobs data, money markets are pricing in two Fed rate cuts this year and around 40 bps of monetary easing.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Strategic Planning, Leadership & Analysis Professional with a background in healthcare, manufacturing and retail. I have a strong understanding of the complex world of revenue Management and how to make it more relevant, understandable, and actionable for executive leadership across all levels of an organization. My career has spanned several years at UnitedHealth Group, Inc. I obtained my B. Comm from the University of Windsor and MBA from Wayne State University
Share This Article
Choose Your Platform: Facebook Twitter Google Plus Linkedin