By Sherin Elizabeth Varghese
(Reuters) – Gold prices edged higher on Thursday, helped by a slight pullback in the dollar, while investors awaited more U.S. economic data and the European Central Bank’s (ECB) policy decision.
Spot gold rose 0.2% to $2,017.39 per ounce by 1040 GMT. U.S. gold futures rose 0.1% to $2,018.10.
The dollar index inched down 0.1%, making greenback-priced gold more appealing to other currency holders. [USD/]
“The rate cut expectations have somewhat slowed as we came into the year with elevated or high expectations, and that has left the markets exposed to disappointments,” said Ole Hansen, Saxo Bank’s head of commodity strategy.
“For now, gold is being left a little bit on its own because the market simply needs more data to judge whether the market is at risk of a deeper correction or whether this level around the $2,000 is strong enough to support the market in the short term.” Hansen added.
According to the CME FedWatch Tool, markets widely expect the Federal Reserve to hold rates unchanged at its policy meeting on Jan. 30-31 and have pared back the timing of the first interest rate cut.
The ECB will announce its policy decision at 1315 GMT. While the central bank is expected to keep rates steady, investors will be looking out for comments from President Christine Lagarde.
The first reading of fourth-quarter U.S. GDP is due at 1330 GMT and the personal consumption expenditure data on Friday are also on the radar, for more cues on the Fed’s rate cut plans.
Data on Wednesday showed that the U.S. economy began 2024 on a positive note, with economic activity increasing in January and inflation starting to ease.
Spot silver rose 1% to $22.87 per ounce, platinum dipped 0.1% to $898.36, while palladium edged up 0.1% to $963.64.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Varun H K)
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