GOLD prices firmed in early Asian hours on Tuesday (Jan 3), with the market’s attention turning to minutes from the US Federal Reserve’s latest policy meeting due this week.

Spot gold was up 0.4 per cent at US$1,831.24 per ounce as of 0102 GMT. US gold futures rose 0.6 per cent to US$1,837.50.

Minutes from the Fed’s December policy meeting are due on Wednesday, which could offer hints on the central bank’s tightening path. The Fed raised rates by 50 basis points (bps) in December after four consecutive increases of 75 bps each.

Gold is considered a hedge against inflation and economic uncertainties, but higher interest rates increase the opportunity cost of holding gold as it pays no interest.

Top bullion consumer China reported three new Covid-19 deaths in the mainland for Jan 2, the Chinese Center for Disease Control and Prevention said.

For much of the global economy, 2023 is going to be a tough year as the main engines of global growth — the United States, Europe and China — all experience weakening activity, the head of the International Monetary Fund said on Sunday.

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Meanwhile, a survey showed on Monday that the downturn in eurozone manufacturing activity has likely passed its trough as supply chains begin to recover and inflationary pressures ease.

Spot silver rose 0.5 per cent to US$24.12, platinum lost 0.3 per cent to US$1,066.92 and palladium was down 0.3 per cent to US$1,788.97. REUTERS