Gold prices remained steady near a three-month peak on Tuesday, buoyed by subdued U.S. manufacturing and construction spending. Investors adopted a cautious stance ahead of the Federal Reserve chair’s statement and key jobs data later in the week, contributing to the precious metal’s resilience.
Spot gold experienced a 0.01 percent increase, recording $2,114.69 per ounce as of 7:17 GMT. Spot gold continued to hover near Monday’s levels of $2119.69 that marked its highest point since December 4. On the other hand, U.S. gold futures saw a 0.18 percent decrease to $2,122.55.
In Saudi Arabia, gold prices saw a SAR4 increase. Twenty-four-carat gold was priced at SAR276 per gram. Meanwhile, 22-carat stood at SAR255 per gram.
Economic data
London gold price benchmark hit a record high of $2,098.05 per troy ounce during an afternoon auction on Monday. According to analysts, the rally in gold prices was fueled by softer-than-expected U.S. data and a retreat in real rates. Data last week revealed a further decline in U.S. manufacturing in February and a gradual easing of inflation. Meanwhile, consumer sentiment remained weak.
Federal Reserve Bank of Atlanta President Raphael Bostic emphasized on Monday that the central bank is not under immediate pressure to cut interest rates, citing a robust economy and job market. Market attention now turns to Fed Chair Powell’s upcoming congressional testimony, expected to provide insights into the U.S. economic health and potential rate adjustments. Lower interest rates typically enhance the attractiveness of non-yielding assets like gold, thus supporting its prices.
Read: Oil prices decline amid concerns over Chinese economic reforms
Other precious metals
Contrary to gold prices, spot platinum declined 0.7 percent to $890.95 per ounce while palladium dropped over 1 percent to $950.13. Meanwhile, spot silver saw a 0.8 percent decline to $23.71. Analysts expect platinum to recover amid the ongoing substitution of platinum for palladium and strong auto sales.
For more news on markets, click here.
