Gold prices were flat on Wednesday as tensions in the Middle East appeared to ease while investors turned their attention to GDP data on Thursday and US inflation on Friday which are expected to give their stamp on the how the Federal Reserve may move regarding the course of interest rates.
Spot gold was steady at $2,322.09 an ounce, near its lowest level since April 5 hit in the previous session.
U.S. gold futures were 0.2 percent lower at $2,338.4.
Bullion prices have fallen more than $100 after hitting a record high of $2,431.29 on April 12.
Spot silver fell 0.2% to $27.23, platinum lost 0.1% to $906.95, while palladium fell 1.7% to $1,002.42.
“The gold and silver market sees a correction with a de-escalation in the conflict in the Middle East. The key question is whether these corrections will translate into a near-term downtrend in prices that would mean there are tops in the market,” said Jim Wyckoff, analyst at Kitco Metals.
“Market focus returns to economic reports and the Fed. If we see ‘warm’ inflation data, then it will be harder for the Fed to cut rates and gold could fall below $2,200,” he added.
“Longer term, gold will rise further with 2024 being an election year, persistent geopolitical conflict and rising US debt,” said Jonathan Rose, CEO of Genesis Gold Group. “Central banks have a monstrous appetite for gold right now, and that’s certainly not slowing down,” he added.
Traders are now anticipating the Fed’s first rate cut, likely in September.
