In the mid-North American session on Tuesday, gold prices are making slight gains while being confined to a narrow range. This trend is primarily influenced by the decline in US Treasury bond yields. Consequently, the US Dollar (USD) is weakening, with the US Dollar Index (DXY), measuring the currency against six others, showing a decrease of 0.05%. As of the latest update, XAU/USD is trading at $2,034.88, reflecting a gain of 0.18%.
Gold is currently lingering around the 50-day Simple Moving Average (SMA) at $2,033.48. Investors are anticipating the release of key economic indicators, including the Personal Consumption Expenditures (PCE) report, which serves as the Federal Reserve’s (Fed) benchmark for measuring inflation. The upcoming Gross Domestic Product (GDP) data, coupled with the PCE report, has the potential to act as catalysts, leading gold prices to break out of the current trading range situated between $2,020 and $2,050.
Earlier announcements from the US Department of Commerce unveiled a sharp decline in Durable Goods Orders for January, surpassing pessimistic expectations. This development is anticipated to set the tone for the Q1 2024 GDP data. Concurrently, Home Prices data presented a mixed picture, with indications of increased buyer demand.
These factors collectively contribute to the current dynamics of the gold market, emphasizing the significance of forthcoming economic indicators in steering gold prices within the established trading range.
