Gold Shines Amid Dollar Decline as Central Bank Decisions Awaited

Gold prices rose on Tuesday as the US dollar weakened, while investors awaited interest rate decisions from several central banks and a series of key economic data from the United States this week. Spot gold increased by 0.5% to $2030.64 per ounce by 05:45 GMT. US gold futures also climbed 0.5% to $2031.90. The dollar index fell by 0.2%, making gold priced in dollars more attractive to holders of other currencies. Tim Waterer, chief market analyst at KCM Trade, stated that gold will continue to fluctuate until it receives indications regarding when the Federal Reserve (the US central bank) might make its first decision to lower interest rates. Last week, US central bank officials mentioned that the bank needs more inflation data before making any decision on cutting interest rates. A rate cut reduces the opportunity cost of holding non-yielding bullion. Investors are looking forward to the US Purchasing Managers' Index data set to be released tomorrow (Wednesday), as well as the fourth-quarter GDP estimates scheduled for Thursday, in addition to the personal consumption expenditures data expected on Friday. The US central bank's next meeting is set for January 30-31. For other precious metals, silver in spot trading rose by 1.1% to $22.33 per ounce, platinum increased by 1.1% to $902.36, while palladium climbed by 0.9% to $944.47.