Gold inches up as dollar eases, US GDP data in focus

GOLD prices ticked up on Thursday (Apr 27), propped up by a softer dollar, while investors eyed US GDP growth data for hints on when the Federal Reserve might consider pausing interest rate increases.

Spot gold rose 0.1 per cent to US$1,991.14 per ounce by 0018 GMT. US gold futures climbed 0.2 per cent to US$2,000.20.

The dollar index was down 0.1 per cent on the day, making gold less expensive for other currencies holders.

The US House of Representatives on Wednesday narrowly passed a bill to raise the government’s US$31.4 trillion debt ceiling, defying Democratic President Joe Biden by attaching sweeping spending cuts for the next decade.

Meanwhile, First Republic Bank’s market value plunged again on Wednesday as investors waited to see if it would be able to find buyers for assets and engineer a turnaround without government support.

Safe-haven gold tends to gain during times of economic or financial uncertainty, while higher rates also dent the appeal of the zero-yield asset.

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Gold steady as investors eye US data for economic cues

Data on Wednesday showed new orders for key US-manufactured capital goods fell more than expected in March, while shipments declined, suggesting that business spending on equipment was likely a drag on economic growth in Q1.

Traders are now focused on US quarterly GDP data due on Thursday, followed by the core personal consumption expenditures index on Friday, the Fed’s preferred inflation gauge.

On the physical front, takeover target Newcrest Mining said on Thursday that gold production in the third quarter fell 0.5 per cent from the second, hurt by lower production at its Cadia project following an unscheduled mechanical breakdown. REUTERS