BENGALURU- Gold prices edged lower on Wednesday, pressured by higher US Treasury yields and a stronger dollar after data suggested the Federal Reserve might slow the pace of rate cuts this year.
Spot gold slipped 0.1 percent to $2,648.16 per ounce. US gold futures fell 0.1 percent to $2,662.30.
“The dollar index bounced back on hopes that we may see bit of a less volatile monetary policy from the Fed this year so overall there is some weakness in gold prices being displayed,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
The dollar strengthened and benchmark 10-year Treasury yield hit an eight-month high after data on Tuesday pointed to a strong economy.
US job openings in November grew to 8.098 million, exceeding forecasts, and higher than October’s numbers of 7.839 million.
Markets are currently pricing in the probability of just one Fed cut in 2025, down from two in December, according to the CME FedWatch tool.
The market now awaits US nonfarm payrolls report on Friday for more clues on the Fed’s policy path. ADP employment numbers and the minutes from the Fed’s December meeting, due later in the day, are also on investors’ radar.
