Gold steady as investors eye US data for economic cues

GOLD prices held steady around the key US$2,000-per-ounce mark on Wednesday (Apr 26) as investors maintained a cautious stance and sought more clarity on the Federal Reserve’s rate-hike trajectory from upcoming US economic data.

Spot gold held its ground at US$1,999.09 per ounce by 0042 GMT. US gold futures rose 0.3 per cent to US$2,010.20.

The dollar index eased 0.1 per cent, making gold more attractive for buyers holding other currencies.

Data on Tuesday showed US consumer confidence dropped to a nine-month low in April as worries about the future mounted, further heightening the risk that the economy could fall into recession this year.

Sales of new US single-family homes jumped to a one-year high in March, likely as a retreat in mortgage rates boosted demand.

The US central bank’s rate-setting Federal Open Market Committee will meet on May 2-3.

Although gold is considered a hedge against inflation and economic uncertainty, higher interest rates dim the non-yielding asset’s appeal.

Benchmark 10-year Treasury yields fell by their largest amount since March on Tuesday, while short-term yields climbed as investors balanced rising concerns about the regional banking sector and the possibility of an imminent recession with worries about the US debt ceiling.

First Republic Bank faces dwindling and tough options to turn around its business with the creation of a ‘bad bank’ or asset sales possibilities, a source familiar with the matter said, after the lender showed the extent of deposit flight during last month’s banking crisis.

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Gold prices rise on dollar dip; market eyes Fed rate-hike cues

Spot silver ticked 0.1 per cent higher to US$25.06 per ounce, platinum rose 0.7 per cent to US$1,094.12, and palladium climbed 1 per cent to US$1,498.95. REUTERS