Spot gold was 0.2% higher to $2,025.09 per ounce, and gold futures settled 0.2% higher at $2025.8
Gold prices rose on Tuesday, as investors awaited a slew of U.S. economic data this week for more hints on the Fed’s timeline for interest rate cuts.
Spot gold was 0.2% higher to $2,025.09 per ounce by 1900 GMT.
Gold futures settled 0.2% higher at $2025.8.
The gold market is just above the $2,000 mark and it seems to be a neutral market. Every time we start to break higher, we come back down, said Daniel Pavilonis, senior market strategist at RJO Futures.
There is a lot of uncertainty on what is going to happen here economically in the U.S., he said.
Focus this week will be on the U.S. flash PMI report on Wednesday, Q4 advance Gross Domestic Product estimates due on Thursday, and personal consumption expenditures data on Friday.
Fed officials last week said the U.S. central bank needs more inflation data in hand before any rate cut judgment could be made and that the baseline for cuts to start was in Q3.
Markets are pricing in the U.S. Federal Reserve to hold rates unchanged at the end of the policy meeting on January 30-31 and have pared back the timing of the first interest rate cut, as per CME’s FedWatch Tool.
Recent rebounds (in gold) seem to be getting shallower, which raises the prospect of further weakness if central banks continue to push back on market expectations of rate cuts, Michael Hewson, chief market analyst at CMC Markets, wrote in a note.
Meanwhile, the ECB meets on Thursday and is expected to hold monetary policy steady.
Spot silver added 1.2% to $22.35 per ounce, platinum jumped 0.7% to $898.41 and palladium advanced 0.9% to $944.42.
