Gold price remains steady, hovering around the nine-month highs


On Wednesday, gold prices remained steady, hovering around the nine-month highs touched in the last session on hopes of a US Federal Reserve rate cut.

FUNDAMENTALS

* Spot gold was flat at $1,936.39 per ounce, as of 0020 GMT. Prices hit their highest since late April 2022 on Tuesday.


* U.S. gold futures were up 0.1% at $1,938.10.

* Investors are mostly expecting the Fed to raise rates by 25 basis points at its policy meeting next week. The US central bank slowed to 50 basis points in December following a fourth consecutive 75 basis point hike.

* Investors may prefer gold, which yields zero, because lower interest rates reduce yields on interest-bearing assets such as government bonds.

* The market’s focus now is on Thursday’s estimate of US Q4 GDP growth.

* US business activity declined for the seventh month in a row in January, for the first time since September, although the downturn in both manufacturing and services sectors eased and business confidence bolstered as the new year began.

* Switzerland’s gold exports to countries including China, Turkey, Singapore and Thailand hit a multi-year high in 2022, Swiss customs data showed on Tuesday.

* Australia’s Newcrest Mining said its gold production in the second quarter was down 2.8 per cent from the first quarter after its Brucejack operation in Canada was shut down due to a death.

* Spot silver was down 0.4% to $23.57 an ounce, platinum was down 0.3% to $1,053.43 and palladium was down 0.2% to $1,739.68.