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Fed minutes due on Wednesday
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Traders await U.S. PCE, GDP data
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Dollar hovers near more than 1-month peak
(Updates prices)
By Seher Dareen
Feb 21 (Reuters) -
Gold prices eased on Tuesday as the dollar strengthened and bond yields rose, while investors looked toward U.S. economic data later this week for more clues on the rate-hike trajectory of the Federal Reserve.
Spot gold fell 0.5% to $1,832.78 per ounce by 2:21 p.m. ET (1921 GMT). U.S. gold futures slipped 0.4% to settle at $1,842.50.
The dollar index firmed to near its highest in six weeks, making gold more expensive for other currency holders. Benchmark U.S. 10-year Treasury yields were at their highest in over three-months. "Those are bearish outside market forces and you've also got some keener risk aversion in the marketplace which at this point of the day is working against gold and silver," said Jim Wyckoff, senior analyst at Kitco Metals. The focus this week will be on the release of the Federal Open Market Committee's January meeting minutes on Wednesday after strong recent U.S. economic readings raised bets for more Fed rate hikes. Money market participants see the benchmark level peaking to 5.3% in July, and staying near those levels throughout the year. High interest rates and bond yields discourage investors from placing money in non-yielding assets such as gold.
Also on the radar, U.S. gross domestic product data is due on Thursday and the core PCE price index is scheduled for release on Friday.
Commerzbank
lowered their estimates for gold prices to $1,800 per troy ounce for the
first half of 2023, but expected a gradual increase towards $1,950 in the second
half.
Swiss customs data showed that Switzerland sent 58.3 tonnes of gold worth
3.3 billion Swiss francs ($3.6 billion) to Turkey in January, by far the most
for any month in records stretching back to 2012.
Silver rose 0.3% to $21.80 per ounce, platinum gained 1.7%
to $942.08, and palladium climbed 0.7% to $1,520.85.
(Reporting by Seher Dareen in Bengaluru; Additional reporting by Bharat Govind
Gautam; Editing by Shilpi Majumdar and Shailesh Kuber)
