PRECIOUS-Gold retreats as traders lock in profit before U.S. data

Reuters

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      U.S. Q4 GDP data due on Thursday
    

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      Spot gold may rise into $1,956-$1,969 range-technicals
    

  
 (Updates prices)
    By Ashitha Shivaprasad
       Jan 25 (Reuters) - Gold prices fell on Wednesday,
retreating further from a near nine-month peak hit in the
previous session, as some investors booked profit ahead of U.S.
economic data that could steer the Federal Reserve's policy
tightening path.
    Spot gold  XAU=  slipped 0.3% to $1,931.04 per ounce by 0730
GMT, after hitting its highest since late April on Tuesday. U.S.
gold futures  GCv1  were down 0.1% at $1,933.50.
    "Gold prices are lower primarily due to a technical
correction after hitting highs; a steady dollar also weighed on
sentiment," said Hareesh V, head of commodity research at Geojit
Financial Services.
    Market focus is now on the fourth-quarter U.S. GDP data due
on Thursday, which could set the tone for the Fed's Jan. 31-Feb.
1 policy meeting.
    Gold could gain if there are signs that the U.S. economy is
slowing and the Fed will soon slow its tightening pace and cut
interest rates, said Ilya Spivak, head of global macro at
Tastylive. 
    "However, for prices to breach the $2,000 level, the U.S.
dollar has to continue weakening," he said.
    Most investors expect the Fed to raise rates by 25 basis
points (bps) next week. The U.S. central bank slowed its
tightening pace to 50 bps last month after four straight 75-bp
hikes.
    With lower rates translating into lesser returns on
interest-bearing assets like government bonds, investors may
prefer zero-yield gold.
    Gold may rise into the $1,956-$1,969 range, according to
Reuters technical analyst Wang Tao.
    Data showed on Tuesday Swiss exports of gold to countries
including China, Turkey, Singapore and Thailand surged to
multi-year highs in 2022. 
    Among other precious metals, silver  XAG=  dipped 0.4% to
$23.58 per ounce, while platinum  XPT=  rose 0.1% to $1,057.75.
    Palladium  XPD=  fell 0.3% to $1,737.63.
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xau    https://tmsnrt.rs/3XEJdnO
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 (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
Rashmi Aich and Subhranshu Sahu)
 ((Ashitha.Shivaprasad@thomsonreuters.com;))

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