Gold set for third monthly rise on softer dollar, Fed slowdown bets
Published by
ScrapPrices
Published on January 31,2023 08:00 AM Metals
Gold prices on Tuesday were on track for their third straight monthly gain, helped by an overall weaker dollar and expectations around slower rate hikes from the U.S. Federal Reserve.
Gold set for third monthly rise on softer dollar, Fed slowdown bets

Jan 31 (Reuters) - Gold prices on Tuesday were on track for their third straight monthly gain, helped by an overall weaker dollar and expectations around slower rate hikes from the U.S. Federal Reserve.

Spot gold pared most of its earlier losses on the day, and was little changed at $1,922.27 per ounce by 9:35 a.m. ET (1435 GMT). Bullion has gained 5.3% in January.

U.S. gold futures fell 0.1% to $1,938.20.

The dollar was heading for its fourth consecutive monthly loss, making bullion more attractive for holders of other currencies.

"We have so many event-driven risks throughout this week and investors have to pay attention to that. Gold prices are likely to be volatile," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

"(However), $1,950 per ounce is an easily achievable target in the short-term for bullion,", Streible added.

The U.S. central bank policy decision is due at 1900 GMT on Wednesday, followed by a news conference from Fed Chair Jerome Powell.

Markets are pricing in a 25-basis-points hike (bps) by the Fed, after slowing its pace to 50 bps in December, following four straight 75-bp hikes.

Additionally, the Bank of England and the European Central Bank are likely to be raising rates on Thursday.

Lower rates tend to be beneficial for bullion, decreasing the opportunity cost of holding the non-yielding asset.

Meanwhile, analysts and traders have raised their predictions for gold prices but expect high rates to keep a lid on rallies, a Reuters poll showed.

MORE METALS NEWS
May 09,2025 06:00 AM
Nippon Steel (5401.T), opens new tab expects net profit to slide 43% in the fiscal year ending March 2026, it said on Friday, citing a weak global steel market pressured by China's exports and the impact of new U.S. tariffs.
May 07,2025 07:00 AM
Mining major Rio Tinto (RIO.L), opens new tab, (RIO.AX), opens new tab said on Wednesday it had extracted its first primary gallium as part of a collaboration with U.S.-based Indium Corp that aims to eventually produce commercial quantities of the critical, rare-earth metal.
May 06,2025 07:00 AM
Away from the headlines around the minerals deal with Ukraine, the United States has pursued a potentially even more significant critical metals deal in the Great Lakes region of Africa.