Gold slips in early trade due to a steady dollar

21 Apr 2023 , 08:29 AM

Although lower U.S. economic data bolstered expectations for a pause in the Federal Reserve’s rate-hike cycle after a likely increase next month, gold prices fell on Friday as the dollar held steady.

 Following a 1% increase on Thursday, spot gold was down 0.1% at $2,003.33 per ounce. Futures for U.S. gold decreased 0.2% to $2,014.80.

The dollar index remained stable, which made gold more expensive for buyers using other currencies.

According to data released on Thursday, the number of Americans who filed new applications for unemployment benefits rose slightly over the previous week, indicating a weakening of the labour market.

In a separate analysis, the Philadelphia Fed found that in April, factory activity in the mid-Atlantic area fell to its lowest level in almost three years.

Loretta Mester, the president of the Cleveland Fed, stated on Thursday that the U.S. central bank still has more interest rate rises planned, but that the aggressive approach to raise borrowing costs during the past year to combat high inflation is coming to an end.

Lorie Logan, president of the Dallas Federal Reserve, stated that she is evaluating the Fed’s progress in battling inflation.

Markets are pricing in an 84.5% possibility of a 25 basis-point rise in May, according to the CME FedWatch tool.

Spot silver decreased 0.2% to $25.23 per ounce, while palladium increased 0.2% to $1,589.90 and platinum was unchanged at $1,093.16.

For feedback and suggestions, write to us at [e-mail]