Gold slips on firmer dollar as US data zooms into focus

Gold slips on firmer dollar as US data zooms into focus

Gold prices dipped on Tuesday as the dollar firmed, while investors shied away from making big bets ahead of U.S. economic data that could determine the Federal Reserve’s rate-hike strategy.Spot gold fell 0.2% at $1,984.89 per ounce by 1032 GMT, while U.S. gold futures also slipped 0.2% at $1,995.20.The dollar index rose 0.2%, making bullion more expensive for overseas buyers.Market focus is on the U.S. consumer confidence report scheduled at 1400 GMT, while core personal consumption expenditures index and GDP quarterly growth rate are due later this week.

“If consumer confidence is positive then the market is seeing a lesser chance of the U.S. economy entering a recession, which is negative for gold,” said Peter Fertig, an analyst with Quantitative Commodity Research.”Restrictive monetary policy from the Fed might limit upside potential for gold in the near-term.”Investors are expecting an 88% chance of a 25-basis point (bps) hike by the U.S. central bank at its May 2-3 policy meeting.

According to Reuters technical analyst Wang Tao, spot gold may end its bounce below a resistance at $2,009 per ounce, and resume its downtrend thereafter.On the physical front, top consumer China’s net gold imports via Hong Kong in March fell more than 25% from the previous month, Hong Kong Census and Statistics Department data showed.

Among other precious metals, silver fell 0.7% to $25.00 per ounce, platinum was down 1.2% at $1,069.21 and palladium lost 2.5% to $1,497.16.