Gold prices slip as dollar recovers

Gold prices fell in Asian trade on Wednesday, as the US dollar recovered from its 13-month lows. Despite this, the yellow metal remained close to its recent record high, supported by geopolitical tensions and the anticipation of lower interest rates.

Spot gold prices retreated by 0.5 per cent to $2,512.88 an ounce, while gold futures declined by 0.2 per cent. The precious metal’s resilience was attributed to the dollar’s limited recovery and continued bets on Federal Reserve interest rate cuts.

The focus is now on the PCE price index, the Fed’s preferred inflation gauge, which is scheduled to be released on Friday.

The data is expected to provide further clues on the path of interest rates. Lower rates generally favour gold as they reduce the opportunity cost of holding non-yielding assets.

Other precious metals, such as platinum and silver, also experienced declines, though their movements were less pronounced compared to gold’s recent rally.

Attribution: Investing.com