The price of Gold continues to fall below the bar of 2000 USD per ounce
Gold continued to slide on Tuesday 25th April as a stronger dollar countered support from lower Treasury yields, as investors await a slew of U.S. economic data due later this week that could sway the stance. Federal Reserve on interest rates.
Spot gold fell 0.2% to $1,985.90 an ounce on Tuesday, after falling below the key $2,000 level late last week. US gold futures fell 0.1% to $1,997.40 an ounce.
Meanwhile, the dollar rose 0.4% to make bullion relatively more expensive for buyers holding other currencies, while benchmark 10-year Treasury yields fell.
“The Fed would do its best to try to keep rates higher to quell inflation, but that likely means it could be a constraint on such rapid economic growth,” said Everett Millman, chief market analyst. at Gainesville Coins, in a Reuters.
“No matter what decision they have to make, it will likely bring some type of stress, and this looming uncertainty is certainly what gold is going to be sensitive to.”
The U.S. consumer confidence index fell to 101.3 in April from 104 last month and below market expectations for 104.
The Core Personal Consumption Expenditure (PCE) index, the Fed’s favorite inflation indicator, is due out on Friday, while quarterly gross domestic product data is due out on Thursday.
Markets see an 84% chance of a 25 basis point rate hike at the May 2-3 Fed meeting, according to Reuters.
SOURCE:Reuters
