Gold prices hover around $2000 ahead of U.S. economic data

April 26, 2023 (MLN): International spot gold fell around 1% sharply last week amid interest rate fears amongst investors, with spot gold currently trading at $1,999.61, up slightly by 0.14%, and the U.S. gold futures standing at $2,010.1.

Gold prices remain range bound as market participants closely monitor the release of U.S. gross domestic product (GDP) data, scheduled on Thursday, as well as the personal consumption expenditures (PCE) data on Friday, right before the upcoming Fed’s policy meeting on 2-3 May.

Gold continues to trade below the $2000 key level and is trading around a must-hold level ( green box ) shown in XAUUSD weekly timeframe chart below, to continue bullish momentum. Losing this level will be a sign of weakness in the market.

Market participants are closely monitoring the developments for any significant news that could shift gold prices in either direction.

Michael Hewson, chief market analyst at CMC Markets, stated that the market’s future direction will be set by the tone of the Fed in the upcoming meeting.

Additionally, recent data showed U.S. consumer confidence dropped to a nine-month low in April.

The price of silver also remains stable, currently at $24.99 per ounce, which is a decrease of 0.04% from the previous session.

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