Gold gained at settlement today, Jan. 31, but was on track to snap its three-month winning streak, as traders absorbed recent data that showed a slowdown in the pace of employment in the US private sector, ahead of the Federal Reserve’s interest rate decision.
Bullion for April delivery leapt 0.80%, or $16.50, to close at $2,067.4 per ounce, while the price of February contracts rose to $2,048.40 an ounce. However, the precious metal ended a three-month series of gains while beginning the year with monthly losses of 1.15%.
On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, plummeted by 0.15% to 103.22 points at 09:19 pm Makkah time.
According to ADP data, US companies added 107,000 new employees in January, a decrease from last December’s downwardly revised reading of 158,000, against expectations for 150,000 workers.
Markets widely anticipate the Fed to stabilize interest rates at its meeting that ends today. Investors are awaiting Chairman Jerome Powell's conference at a later date, seeking more clues about the expected date for the start of the monetary easing cycle.
The World Gold Council predicts total demand for the yellow metal to reach record levels in 2024, supported by the expected decline in interest rates and ongoing geopolitical risks, after hitting an all-time high last year.
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