US Economic Data is Positive, World Gold Prices Experience a Decline

CHICAGO - Comex gold futures prices fell at the close of trading Friday, January 26. This is in line with investors' reaction to positive economic data from the United States.

Quoting Antara, the most active gold contract for February delivery fell 50 cents or 0.02 percent, to 2,017.30 US dollars per ounce.

The US Department of Commerce reported Friday that the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred measure of inflation, slowed to 2.9 percent year-over-year in December.

Consumer spending in the US rose 0.7 percent in December, up from November's 0.4 percent.

Investors predict that interest rate cuts will likely not begin until May.

Market analysts believe that gold traded in a tight range between 2,000 and 2,050 US dollars per ounce over the past week.

Although positive economic data can weaken gold prices, safe haven demand for gold is strengthening as the Israel-Hamas war worsens and conflicts in the Middle East escalate.

The Federal Reserve's monetary policy meeting will be held next week. The big US employment report will also be released next week, on Friday to be precise.

Another precious metal, silver, for March delivery fell 5.50 cents or 0.24 percent to 22.872 US dollars per ounce. Platinum for April delivery rose 26.80 US dollars, or 3.00 percent, to 921.30 US dollars per ounce, Xinhua said.