Gold prices stuck in tight range -

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FE Team | Published: October 25, 2023 23:26:59

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Gold prices were stuck in a narrow $10 trading range on Wednesday as investors held back from making big bets ahead of US economic data this week that could shed more light on the Federal Reserve's interest rates outlook, reports Reuters.
Spot gold was up 0.3 per cent at $1,976.19 per ounce by 1207 GMT, having declined in the previous two sessions. US gold futures gained 0.1 per cent to $1,987.30.
"On one side, the geopolitical tensions and disappointing economic data in Europe drives the safe-haven trade for gold," said ActivTrades senior analyst Ricardo Evangelista.
"On the other side, strong data out of the U.S. will raise expectations that the Fed will keep rates higher for longer, perhaps even hike again in this year, and this should support the dollar (and) Treasury yields, and it's bad for gold."
US business activity ticked higher in October while output in the euro zone took a surprise turn for the worse, surveys showed on Tuesday.
Market focus now shifts to the US third-quarter GDP figures due on Thursday and the US PCE price index on Friday. Gold is used as a safe investment during times of political and financial uncertainty.
Elsewhere, spot silver fell 0.4 per cent to $22.83 per ounce, platinum gained 0.3 per cent to $886.65 and palladium gained 1.1 per cent to $1,131.89.