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Gold rises ahead of US economic data


Spot gold was 0.3% higher at $2,324.10 per ounce and U.S. gold futures dropped 0.1% to $2,337.20

Gold prices edged up on Thursday as the U.S. dollar slid, while investors focus shifted to U.S. economic data for hints on the Fed’s rate trajectory.

Spot gold was 0.3% higher at $2,324.10 per ounce by 0752 GMT. U.S. gold futures dropped 0.1% to $2,337.20.

The dollar index dropped 0.2% against a basket of currencies, making greenback priced bullion more attractive for buyers holding other currencies.

Asian buying especially from China’s side for its reserves and a slightly weak dollar are supporting prices right now, according to Jigar Trivedi, a senior analyst at Reliance Securities.

Nevertheless, bullion prices have dropped more than $100 since reaching a record high of $2,431.29 on April 12, and have shed more than 3% this week so far.

Profit taking after an extended run higher in gold and lower tangents in the Middle East resulted in a general retreat in prices, according to Marex analyst Edward Meir.

The Federal Reserve’s rate setting committee is meeting from April 30 to May 1. Before that, the U.S. first quarter GDP data is due later on Thursday and the March core Personal Consumption Expenditures Price Index (PCE) data is due on Friday.

While geopolitics have taken a little bit of a backseat, the dollar could soften further and gold prices could move a bit up if data shows an in line or lower than expected core PCE number. Nonetheless, if the inflation numbers run hot, gold could come under further pressure, Meir said.

Among other precious metals, spot silver gained 0.9% to $27.40 per ounce, spot platinum was up 0.7% to $909.10 and palladium rose 0.3% to $1,004.00.

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