Gold prices fall as dollar rebounds ahead US economic data

Gold prices declined today, Jan. 27, heading for a slight weekly loss of nearly 0.2% after the dollar rebounded as investors are anticipating the release of US economic data that may affect interest rate.

Investors are anticipating the announcement of US PCE data, the University of Michigan Consumer Confidence Index and existing home sales.

The Federal Reserve is expected to raise the interest rate 25 basis points (bps) in its next-week meeting, after raising it 50 bps in December 2022.

Gold futures for April delivery fell by 0.25%, or $4.8, to $1,941.9 an ounce at 10:45 am Makkah time. Spot prices also edged down by 0.25%, or $4.82, to $1,924.39 an ounce.

Silver futures for March delivery were down 0.75% to $23.84 per ounce.

Spot prices for platinum lost 0.87% to $1,012.8. Palladium prices decreased 0.44% to $1,669.44.

The dollar index, which measures the performance of the US currency against a basket of six major currencies, rose 0.17% at 102.01 points.