In the US, the interest of investors turns on Thursday and Friday.
The price of gold tried to recover from the latest losses, but remained in a narrow trading range, as investors await US economic data for further clarity on the path of interest rates from the US Federal Reserve.
The spot price of the precious metal rose 0.2% to $2,325.23 an ounce, after hitting its lowest level since April 5 in the previous session. U.S. gold futures were down 0.2 percent at $2,338.
“Tuesday’s break of $2,300 likely means that gold prices will remain in a bullish path ahead of US inflation data and the Bank of Japan meeting…I expect gold to move between $2,300 and $2,350, except if a new catalyst emerges,” said City Index senior analyst Matt Simpson.
In the US the interest of investors
This week, investor interest will focus on US gross domestic product (GDP) data due on Thursday and the personal consumption expenditure (PCE) report due a day later.
The strong picture of economic data in the US suggests that any surprises are likely to be on the upside, potentially setting the stage for a bullish reaction in the dollar and US Treasury yields, Simpson added.
A stronger dollar and rising bond yields make the precious metal less attractive to holders of other currencies and as an investment option compared to debt.
The price of gold “climbed” to an all-time high of $2,431.29 on April 12, recording gains of almost $400 since early March.
The rally then lost ground as fears of a wider regional conflict in the Middle East faded. Gold is down more than 2% so far this week.
The remaining precious metals
In relation to other precious metals, the spot price of silver rose 0.1% to $27.32 per ounce.
“We expect silver to outperform gold as investment flows skyrocket. Slower mine output growth and strong industrial demand suggest supply is lagging demand, which will keep the market in a structural deficit,” ANZ said in a note.
Platinum rose 0.5% to $912.10, while palladium gained 0.4% to $1023.61.
