Gold steadies near 9-month peak with spotlight on US data

GOLD prices hit a nine-month high on Thursday (Jan 26) before trading steady, as investors braced for US economic data that could influence the Federal Reserve’s policy tightening path.

Spot gold was flat at US$1,946.73 per ounce, as of 0040 GMT, after hitting its highest since April 2022.

US gold futures were up 0.2 per cent at US$1,947.20.

Market attention turns to the fourth-quarter US GDP data due at 1330 GMT, which could set the tone for the Fed’s upcoming policy meeting.

Most investors are expecting the Fed to raise rates by 25 basis points (bps) at its Jan 31-Feb 1 policy meeting. The US central bank slowed its tightening pace to 50 bps last month after four straight 75-bp hikes.

Lower interest rates tend to be beneficial for bullion as they decrease the opportunity cost of holding the non-yielding asset.

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European Central Bank policymakers Joachim Nagel and Gabriel Makhlouf said on Wednesday they would not be surprised if interest rate increases continue into the second quarter after two expected moves in February and March.

Russian gold and silver producer Polymetal said on Wednesday its fourth-quarter revenue jumped 30 per cent year-on-year to US$1 billion as it sold down metal and concentrate inventory.

Spot silver was unchanged at US$23.90 per ounce, platinum gained 0.3 per cent to US$1,042.63, and palladium fell 0.1 per cent to US$1,696.55. REUTERS