Gold prices moved little on Wednesday but saw some relief as the dollar eased from three-month highs, although waning bets on early U.S. interest rate cuts kept the outlook for the yellow metal uncertain.
Bullion prices were battered by bets on higher-for-longer interest rates, especially following a slew of strong U.S. economic readings and hawkish comments from Federal Reserve officials.
The dollar and U.S. Treasury yields had surged on these signals. While the dollar fell slightly from three-month highs on Wednesday, the greenback was still sitting on strong gains so far in 2024.
A higher outlook for U.S. interest rates bodes poorly for gold, given that high rates increase the opportunity cost of investing in bullion. This trade had limited any major upside in gold over the past two years.
Spot gold steadied at $2,035.12 an ounce, while gold futures expiring in April were flat at $2,050.95 an ounce by 00:25 ET (05:25 GMT).
Source : Investing.com
