Gold prices edged higher on Wednesday, reaching $2,325.23 per ounce, but remained confined to a tight trading range, as reported by Reuters.
Investors are awaiting key US economic data releases this week for clues on the Federal Reserve’s interest rate path.
The uptick follows a drop to the lowest level since early April, with US gold futures settling at $2,338.00.
Analysts believe a recent failed attempt to break below $2,300 suggests gold may stay within this range until the release of US inflation data and the Bank of Japan (BOJ) meeting.
This week’s crucial data points include Thursday’s US GDP figures and Friday’s Personal Consumption Expenditures (PCE) report.
According to analysts, strong US economic data could push the dollar and US yields higher, putting further pressure on gold prices.
A stronger dollar makes gold, priced in dollars, less attractive for investors holding other currencies. Additionally, rising bond yields make gold, which offers no interest, a less appealing investment compared to debt.
While gold struggles, silver prices rose slightly to $27.32 per ounce. Analysts at ANZ predict silver to outperform gold due to anticipated investment inflows.
Meanwhile, other precious metals saw modest gains, with spot platinum reaching $912.10 and palladium climbing to $1,023.61 per ounce.
