Posted 20th March 2024

Gold Price News: Gold Eases Slightly As US Dollar Strengthens

Gold prices moved slightly lower on Tuesday in calm conditions, coming under moderate pressure from a stronger US dollar.

Prices eased to around $2,157 an ounce by late afternoon Tuesday, having posted an intra-day low of $2,148 an ounce. That compared with around $2,161 in late deals on Monday.

The relatively narrow trading range came as the US dollar made gains against other major currencies on Tuesday, putting downward pressure on dollar-denominated assets like gold.

Meanwhile the markets were in a more cautious mood after gold’s hefty gains seen in the first half of March, which took prices to all-time highs of around $2,195 an ounce.

The US Fed is widely expected to maintain the existing interest rate of 5.5% at its meeting on Wednesday, as the central bank works to bring inflation under control. There will also follow an announcement by the FOMC on its economic projections and a press conference later in the day. The markets will be watching closely for further signs of any upcoming start to a rate-cutting cycle, with views now mixed on the probability of a June rate cut, according to data from interest rate traders.

Looking ahead to Thursday, the Bank of England is also widely expected to keep its existing interest rate of 5.25% on hold.

Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.

Read our Editorial Guidelines here.