Gold prices slipped on Thursday in a thinly traded market following a more than 2% gain in the previous session, pressured by a firm US dollar ahead of key inflation data that could influence the Federal Reserve’s interest rate decisions.
Spot gold fell 0.2% to US$4,968.10 per ounce, while U.S. April gold futures declined 0.4% to US$4,987.60.
“Gold is in a consolidation mood, reflective of thin liquidity conditions during the Asia holiday period rather than a shift in fundamentals,” said Christopher Wong, strategist at OCBC.
Markets across Mainland China, Hong Kong, Singapore, Taiwan and South Korea remained closed for Lunar New Year holidays, contributing to the subdued trading. The dollar stayed near a one-week high, making bullion priced in greenbacks more expensive for holders of other currencies.
January Federal Reserve minutes indicated near-unanimous agreement to hold interest rates steady, though policymakers remain divided on future moves, with some open to hikes if inflation persists and others leaning towards cuts should inflation ease.
Market participants currently anticipate the first rate reduction this year in June, according to CME’s FedWatch Tool.
Investors now await weekly US jobless claims and Friday’s Personal Consumption Expenditures report, the Fed’s preferred inflation gauge.
Wong added that near-term consolidation is expected before gold and silver trend higher, with gold likely trading between US$4,800 and US$5,100 per ounce and silver in the US$70 to US$90 range.
Spot silver held at US$77.18 per ounce after a more than 5% rise on Wednesday, while platinum eased 0.1% to US$2,069.58 and palladium remained steady at US$1,715.93.
Reuters
