Gold prices dipped on Tuesday as the dollar firmed, while investors shied away from making big bets ahead of US economic data that could determine the Federal Reserve's rate-hike strategy, reports Reuters.
Spot gold fell 0.5 per cent at $1,978.72 per ounce by 1141 GMT, while US gold futures also slipped 0.5 per cent at $1,989.00.
The dollar index rose 0.3 per cent, making bullion more expensive for overseas buyers.
Investors are expecting a 90 per cent chance of a 25-basis point hike by the US central bank at its May 2-3 policy meeting.
"We believe prices at $2,000 per ounce or above are only justified in case of a broad-based and longer-lasting US recession, accompanied by a return of safe-haven seekers," Carsten Menke, head of Next Generation Research at Julius Baer, wrote in a note.
Gold is a safe investment amid economic uncertainties while rising interest rates increase the opportunity cost of holding zero-yielding gold, denting its appeal.
According to Reuters technical analyst Wang Tao, spot gold may end its bounce below a resistance at $2,009 per ounce, and resume its downtrend thereafter.
Gold drops on firmer dollar
FE Team | Published: April 25, 2023 21:03:07
Gold drops on firmer dollar
Share if you like