Gold prices remain unchanged in early trade

2 Mar 2023 , 08:25 AM

On Thursday, gold prices barely changed as a barrage of economic data contributed to investor worries that interest rates would rise more  than anticipated.

Spot gold was unchanged at $1,836.69 per ounce after reaching a one-week high on Wednesday. To $1,843.40, U.S. gold futures declined by 0.1%.

The United States’ manufacturing sector shrank for the fourth consecutive month in February, according to data released on Wednesday. Nevertheless, there were indications that factory activity was beginning to stabilise, with a measure of new orders rising from a more than 2-1/2-year low.

Federal Reserve officials in the United States disagreed on Wednesday about whether the recent high inflation figures and a persistently robust employment market would call for even more stringent interest rates or merely patience in continuing a tight monetary policy for longer.

The Fed’s target rate is predicted by the money markets to reach a peak of 5.465% in September.

German consumer prices, which are harmonised to compare with those of other EU member states, increased more than expected in February, indicating that persistent cost pressures have not abated and raising expectations for a rate hike by the European Central Bank.

For buyers holding other currencies, bullion is now more affordable as the dollar index weakened by 0.1%.

On Wednesday, benchmark 10-year Treasury yields in the United States reached 4% for the first time since November.

Spot silver held steady at $20.99 per ounce while platinum and palladium each saw little declines of 0.2% to $953.51 and $1,442.96 respectively.

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