Gold prices rise in early trade

27 Apr 2023 , 09:24 AM

 Gold prices edged up on Thursday, supported by a weaker dollar.

Spot gold increased 0.1% to $1,991.14 per ounce. American gold futures increased 0.2% to $2,000.

The dollar index fell by 0.1% on the day, lowering the price of gold for owners of other currencies.

The U.S. House of Representatives on Wednesday narrowly passed a bill to raise the government’s $31.4 trillion debt ceiling, defying Democratic President Joe Biden by attaching sweeping spending cuts for the next decade.

The market value of First Republic Bank, meanwhile, fell once again on Wednesday as investors watched to see if it would be able to sell its assets and implement a turnaround without assistance from the government.

Safe-haven gold typically appreciates during periods of financial or economic turbulence, while higher interest rates also lessen the allure of the zero-yield commodity.

According to data released on Wednesday, new orders for important capital goods produced in the United States decreased more than anticipated in March while shipments also decreased, indicating that Q1 company expenditure on equipment was probably a drag on economic development.

Traders are currently anticipating the release of the U.S. quarterly GDP data on Thursday and the core personal consumption expenditures index, the Fed’s favoured inflation indicator, on Friday.

On the physical level, takeover target Newcrest Mining said on Thursday that its Cadia project’s decreased production as a result of an unexpected mechanical failure caused third-quarter gold production to decline by 0.5% from the second.

Spot silver increased by 0.1% to $24.92 an ounce, while platinum decreased by 0.1% to $1,088.23. To $1,507,62, palladium declined by 0.3%.

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