Gold prices rose slightly on Monday, trading close to a nine-month high as markets awaited more U.S. data this week to gauge whether the world's largest economy was facing a potential recession in 2023.
Traders are paying close attention to the US fourth-quarter GDP data, due on Thursday. Growth is expected to have slowed in the fourth quarter from the third, as the effects of tighter monetary policy begin to be felt by the economy. Spot gold rose 0.2% to $1,928.95 an ounce, while gold futures rose 0.1% to $1,930.50 an ounce by 19:32 ET (00:32 GMT). Both instruments were trading close to their highest level since late-April, and were less than $100 away from record highs.
Bullion prices have rallied in recent weeks on a mix of safe-haven demand and growing expectations that the Federal Reserve will slow its pace of interest rate hikes in the coming months. Expectations of slower rate hikes have also dented the dollar and U.S. Treasury yields, further benefiting the prices of gold and other non-yielding assets. However, markets remain uncertain over where U.S. interest rates will peak, given that inflation is still trending near 40-year highs.
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