Gold Edgy Ahead of GDP; Central Bank Decisions

Published on Jan 25, 2024 13:57

Gold futures traded below $2,020 per ounce in the Asia electronic trades today, nearing its one-week low, with investors exercising caution ahead of pivotal US economic data and the European Central Bank`s policy decision. The US GDP report is scheduled for Thursday, and the Fed`s PCE inflation data is awaited on Friday, contributing to heightened market tension. Despite the US dollar`s decline to 102.56, its lowest in 10 days, gold faced pressure, ending nearly $9 lower in the previous session. Traders are keenly focused on Federal Reserve Chair Jerome Powell`s remarks for potential signals on the beginning of an easing cycle, while the ECB is expected to maintain its current stance. Surprising markets, the People`s Bank of China announced a forthcoming cut in banks` reserve ratios to support the struggling Chinese economy. In response, MCX February delivery bullion futures traded down by almost Rs 80 at Rs 61,911 per 10 grams.