The gold price received a boost from the recent falling dollar as disappointing data and tonight’s upcoming GDP numbers put pressure on the greenback.
The spot gold price was last at $1,209.70, sliding $3 from where it ended on Tuesday after a $10 gain. Silver was $0.06 lower to $16.54 per ounce.
Overnight data from the US was mostly disappointing – the Conference Board consumer confidence index unexpectedly declined in April, to 95.2 from 101.3. Richmond manufacturing index at -3 was worse than the forecast of -2.
This is the latest in a series of lacklustre data from the US, pressuring the dollar to fall to an eight-week low ahead of the FOMC meeting.
Market participants will now await the Federal Open Market Committee (FOMC) statement from its two-day meeting that kicked off yesterday on further guidance of the Fed’s hand in normalising monetary policy.
We will also see the release of the first reading on US first-quarter GDP number today.
The dollar index fell from 96.80 to 96.09 on Tuesday, and was last seen at 96.16.
“The investment climate appears to be stacking up more positively for gold. The USD has been on the defensive to the euro since mid-April and expectations for a Fed rate hike, which presumably have been factored into the market, has been put off until later in the year. There is ample space for a short-covering rally as net long positions are a modesr 10 million ounce,” said a report from HSBC Securities.
The other precious metals stayed within recent ranges as well, with platinum slipping $3 to $1,152 and palladium down a dollar to $775.
The post Gold price content with USD play, focus on FOMC and US GDP appeared first on The Bullion Desk.
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