gold rate today: Gold inches up as dollar eases, US GDP data in focus
FUNDAMENTALS
* Spot gold rose 0.1% to $1,991.14 per ounce by 0018 GMT. US gold futures climbed 0.2% to $2,000.20.
* The dollar index was down 0.1% on the day, making gold less expensive for other currencies holders.
* The US House of Representatives on Wednesday narrowly passed a bill to raise the government’s $31.4 trillion debt ceiling, defying Democratic President Joe Biden by attaching sweeping spending cuts for the next decade.
* Meanwhile First Republic Bank’s market value plunged again on Wednesday as investors waited to see if it would be able to find buyers for assets and engineer a turnaround without government support.
* Safe-haven gold tends to gain during times of economic or financial uncertainty, while higher rates also dent the appeal of the zero-yield asset. * Data on Wednesday showed new orders for key US-manufactured capital goods fell more than expected in March, while shipments declined, suggesting that business spending on equipment was likely to drag on economic growth in Q1.
* Traders are now focused on US quarterly GDP data due on Thursday, followed by the core personal consumption expenditures index on Friday, the Fed’s preferred inflation gauge.
* On the physical front, takeover target Newcrest Mining said on Thursday gold production in the third quarter fell 0.5% from the second, hurt by lower production at its Cadia project following an unscheduled mechanical breakdown.
* Elsewhere, spot silver rose 0.1% to $24.92 per ounce, while platinum fell 0.1% to $1,088.23. Palladium eased 0.3% to $1,507.62.
