Gold prices rose today, with the weakness of the dollar, while investors prepared for a group of US economic data issued before the monetary policy meeting of the Federal Reserve “Central Bank” next week.
By 02:30 GMT, gold in spot transactions rose 0.4 percent to $1996.50 an ounce, while US gold futures contracts increased 0.5 percent to $2005.20.
The dollar index fell 0.1 percent on the day, making the yellow metal less expensive for holders of other currencies.
On Wednesday, the US House of Representatives narrowly approved a bill to raise the government’s debt ceiling of $31.4 trillion.
Meanwhile, First Republic Bank’s market value fell again on Wednesday as investors wait to see if it will be able to find buyers for the assets and turn around without government support.
Given the “turbulent overall banking situation” and “debt ceiling uncertainty, gold is likely to be more sensitive to the upside than the downside,” said Edward Meer, metals analyst at Marex.
Safe-haven gold rose to a one-year high of $2,048.71 in mid-April when the banking crisis unfolded and weak economic readings in the US boosted bets for a pause in rate hikes. Lower interest rates increase the attractiveness of non-yielding gold.
Traders will closely follow the US quarterly GDP and weekly jobless claims data, which will be released at 12:30 GMT, after data showed on Wednesday that new orders for major manufactured goods in the United States fell more than expected in March, while shipments fell, which is likely The lower spending on equipment led to a decline in economic growth in the first quarter of the year.
For other precious metals, spot silver increased 0.5 percent to $25.02 an ounce. Platinum rose 0.3% to $1,092.68, and palladium rose 0.1% to $1,513.81.