Gold Prices Slide as Market Awaits Key U.S. Economic Data
Gold prices dropped by over 1% as investors braced for upcoming U.S. economic data, including jobs and inflation reports. This data could influence the Federal Reserve's interest rate decisions. A weaker U.S. dollar continues to support gold, while geopolitical tensions and an anticipated decrease in interest rates further bolster its appeal.
Gold prices declined by more than 1% on Tuesday, reflecting market caution ahead of significant U.S. economic data releases, particularly in jobs and inflation, which could guide the Federal Reserve's interest rate decisions. Spot gold was valued at $5,013 per ounce in afternoon trading.
Director of metals trading at High Ridge Futures, David Meger, described this movement as a market consolidation ahead of crucial economic indicators set for release later in the week. Key data includes January's nonfarm payroll figures expected on Wednesday and the Consumer Price Index due Friday.
With U.S. retail sales stagnating in December, economic growth appears to be slowing as the new year begins. This has raised expectations for interest rate cuts, potentially benefiting non-yielding assets like gold. Simultaneously, Indian investors have shown increased interest in gold exchange-traded funds amidst rising geopolitical tensions.
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