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.
CEO and Founder of CanAm Bullion has been dedicated to delivering exceptional value to Canadians since 2017. Driven by a mission to empower Canadians with expert investment advice and education, he has positioned CanAm Bullion as a trusted resource for those seeking to enhance their portfolios with precious metals. Under Michael’s leadership, the company has become synonymous with reliability, knowledge, and dedication, helping Canadians achieve greater financial stability and long-term success.
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