Gold prices settle as investors await US financial data, Federal Reserve data
Date
2/28/2024 7:22:23 AM
(MENAFN) On Wednesday, Gold prices saw a stabilizing trend as the decrease in yields on US Treasury bonds offset some of the effects of the dollar's ascent. Market participants are eagerly anticipating crucial inflation figures and statements from officials of the US Central bank later this week, in hopes of gaining insight into the potential timeline for interest rate adjustments.
As of 0643 GMT, gold settled in immediate transactions at USD2030.12 per ounce, while US gold futures experienced a marginal decline of 0.2 percent, resting at USD2,039.40 per ounce.
The yield on ten-year US Treasury bonds dipped to 4.2855 percent from the previous day's 4.3150 percent.
Meanwhile, the dollar index demonstrated a modest increase of 0.2 percent.
Investors are now holding their breath for the release of US gross domestic product (GDP) data scheduled for 1330 GMT. Additionally, they eagerly await tomorrow's announcement on personal consumption expenditures, which serve as the US Federal Reserve's preferred gauge for measuring inflation.
The allure of gold tends to strengthen in environments characterized by low interest rates, as the precious metal offers a hedge against inflation and economic uncertainty, particularly given its status as a non-interest-bearing asset.
MENAFN28022024000045015682ID1107911031
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.