Gold prices plunged as greenback edged up on Fed's unpredictable stance
Gold inched up on Thursday, but they remained below key levels as the dollar strengthened due to mounting uncertainty over the precise timing of the Fed's interest rate reduction.
Spot gold edged up by 0.1% to $2,043.68 per ounce, meanwhile gold futures added 0.4% to $2,050.95 per ounce. Both dropped 1% for the first consecutive days of the year.
Gold and other non-yielding assets faced further challenges as a result of investors' general caution about making purchases outside of the dollar as they are awaiting the crucial nonfarm payrolls figures.
In the latter days of 2023, the gold had a significant surge due to increasing hope that the Fed would start lowering interest rates as early as March 2024.
Nevertheless, the kick off the year, traders considerably reduced expectations on early rate reduction from the central bank, which hurt the yellow metal.
On Wednesday, gold continued to lose ground while the dollar continued to rise as the minutes from the Fed's December meeting provided little indication as to when the bank might start lowering interest rates this year.