(Reuters) – Gold prices ticked up on Thursday, propped up by a softer dollar, while investors eyed U.S. GDP growth data for hints on when the Federal Reserve might consider pausing interest rate increases.
FUNDAMENTALS
* Spot gold rose 0.1% to $1,991.14 per ounce by 0018 GMT. U.S. gold futures climbed 0.2% to $2,000.20.
* The dollar index was down 0.1% on the day, making gold less expensive for other currencies holders.
* The U.S. House of Representatives on Wednesday narrowly passed a bill to raise the government’s $31.4 trillion debt ceiling, defying Democratic President Joe Biden by attaching sweeping spending cuts for the next decade.
* Meanwhile First Republic Bank’s market value plunged again on Wednesday as investors waited to see if it would be able to find buyers for assets and engineer a turnaround without government support.
* Safe-haven gold tends to gain during times of economic or financial uncertainty, while higher rates also dent the appeal of the zero-yield asset.
* Data on Wednesday showed new orders for key U.S.-manufactured capital goods fell more than expected in March, while shipments declined, suggesting that business spending on equipment was likely a drag on economic growth in Q1.
* Traders are now focused on U.S. quarterly GDP data due on Thursday, followed by the core personal consumption expenditures index on Friday, the Fed’s preferred inflation gauge.
* On the physical front, takeover target Newcrest Mining said on Thursday gold production in the third quarter fell 0.5% from the second, hurt by lower production at its Cadia project following an unscheduled mechanical breakdown.
* Elsewhere, spot silver rose 0.1% to $24.92 per ounce, while platinum fell 0.1% to $1,088.23. Palladium eased 0.3% to $1,507.62.
Thursday, April 27
DATA/EVENTS (GMT)
0900 EU Consumer Confid. Final April
1230 US GDP Advance Q1
1230 US Initial Jobless Clm Weekly
(Reporting by Arundhati Sarkar in Bengaluru; editing by Uttaresh Venkateshwaran)
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