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Gold flat as investors await economic data

Tuesday,   24-Jan-2023   08:07 AM (IST)

Gold prices were little changed on Tuesday, with investors awaiting U.S. economic data due this week that could impact the Federal Reserve’s policy path. Spot gold was steady at $1,932.16 per ounce, as of 0020 GMT. U.S. gold futures were up 0.2% at $1,932.50.  Investors’ focus is on the U.S. fourth quarter GDP growth estimates on Thursday. Traders are mostly pricing in that the Fed will raise rates by 25 basis points (bps) at the Jan. 31-Feb. 1 policy meeting, after slowing its pace to 50 bps in December, following four straight 75-bp hikes. Lower interest rates tend to be beneficial for bullion, decreasing the opportunity cost of holding the non-yielding asset. India is expected to slash the import duty on gold to undercut smugglers who have been offering hefty discounts as illicit imports boom after COVID-19, denting the market share of banks and refiners, government and industry officials told Reuters. Commodities are set to generate “superior total returns” in 2023 and likely to outperform other asset classes again, driven by a fundamental shift in the global macroeconomic landscape and low inventories, analysts at Goldman Sachs said. Spot silver lost 0.2% to $23.40 per ounce, platinum rose 0.1% at $1,047.78, and palladium gained 0.2% to $1,707.83.