Gold prices decline in early trade

29 Mar 2023 , 04:03 PM

Wednesday saw a slight decline in gold prices as the U.S. currency held steady and concerns about a larger impact of the global financial crisis subsided following attempts by regulators to boost investor confidence.

After increasing 1% on Tuesday, spot gold was trading 0.2% down at $1,970.79 per ounce as of 00:50 GMT. To $1,972.30, U.S. gold futures declined by 0.1%.

The dollar index increased by 0.1%, increasing the price of bullion for customers using other currencies.

According to the president of the leading consumer financial watchdog agency, the recent failures of mid-size U.S. lenders highlight the need for improved regulation as well as more rigorous risk management at banks and fintechs.

According to the CME FedWatch tool, markets are currently pricing in a 48% possibility that the U.S. Federal Reserve will increase interest rates by 25 basis points in May as the stress in the banking industry appears to be subsiding.

A study released on Tuesday revealed that although Americans are starting to feel a little uneasy about the labour situation, consumer confidence in the US unexpectedly rose in March.

While exports fell, the U.S. trade deficit in goods widened slightly by 0.6% to $91.6 billion in February, possibly indicating that trade will have a minor negative impact on economic growth in the first quarter.

Spot silver increased by 0.3% to $23.33 per ounce, while platinum and palladium were both unchanged at $962.96 and $1,419.39, respectively.

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