Gold prices fluctuate due to new economic data from the US

Gold prices climbed but fluctuated in a narrow range as investors assessed U.S. economic data to gauge the future of Federal Reserve interest rates. Writes UNN with reference to Reuters.

Details

Spot gold rose by 0.2% to reach $2,325.23 an ounce as of 06:34 GMT, recovering from a drop to its lowest since April 5 in the previous session. At the same time, gold futures in the United States declined by 0.2% to $ 2,338.00.

Tuesday's false breakout of $2,300 probably means gold prices will remain in a range heading into US inflation data and the Bank of Japan meeting... I expect gold to tread water between $2,300 and $2,350 unless a fresh catalyst emerges

This week, investors will focus on the release of US gross domestic product (GDP) data on Thursday and the personal consumption expenditure (PCE) report on Friday. According to Simpson, if the economic data turns out to be strong, it could come as a surprise, which would boost the dollar and US bond yields further. A stronger dollar and higher bond yields make gold, which is priced in dollars, less attractive to investors from other countries and as an alternative to investing in government securities.

Gold bullion prices hit a record high of $2,431.29 on April 12, up nearly $400 since early March. However, price growth slowed as fears of a regional conflict in the Middle East eased. Over the week, the price of gold fell by more than 2%. At the same time, the price of spot silver rose by 0.1%, reaching $27.32 per ounce.

We expect silver to outperform gold as investment flows pick up. Slower mining growth and strong industrial demand suggest that supply is lagging behind demand, which will keep the market in a structural deficit

Recall

Gold prices fell to a two-week low as tensions in the Middle East eased and investors waited for economic data from the United Statesthat could affect interest rates.