PRECIOUS-Gold hovers near nine-month high, focus turns to U.S. data

Reuters

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      U.S. Q4 GDP estimates, jobless claims due on Thursday
    

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      Gold needs fresh catalyst to push higher - analyst
    

  
 (Adds details, updates prices)
    By Seher Dareen
       Jan 25 (Reuters) - 
    Gold reversed course to edge up on Wednesday as the dollar
weakened and investors kept a close eye on a slew of upcoming
U.S. economic data that could influence the Federal Reserve
monetary policy meeting next week.
    Spot gold  XAU=  rose 0.2% to $1,940.49 per ounce by 1:40
p.m. ET (1840 GMT). U.S. gold futures  GCv1  settled up 0.4% to
$1,942.6.
    Prices had fallen by up to 0.6% earlier in the session.
    Some corrective price action and profit-taking from traders
are the reasons for the slight pullback earlier today in gold,
which "could be argued as being healthy for the uptrend to be
extended," said Jim Wyckoff, senior analyst at Kitco Metals. 
    Gold prices rose to a nine-month high on Tuesday as fears
over a global recession and hopes around slower rate hikes from
the U.S. central bank boosted its allure.
    The dollar  .DXY  was 0.3% lower on Wednesday, making gold
more attractive to holders of foreign currencies.
    The U.S. Commerce Department is expected to unveil its
initial advance fourth-quarter gross domestic product (GDP)
estimates on Thursday, which could set the tone for the Fed's
Jan. 31-Feb. 1 policy meeting.
    U.S. weekly initial jobless claims, new home sales and
durable goods orders are also on the radar for Thursday.
    Traders see the policy rate peaking at 4.91% in June, even
though Fed policymakers have repeatedly backed taking rates
above the 5% level.  FEDWATCH 
    Lower interest rates tend to be beneficial for bullion as
they decrease the opportunity cost of holding the non-yielding
asset.
    "Gold's run was sparked by a change in sentiment in how
quickly the Fed will pause its rate hikes," along with the
weakening in crypto exchange FTX and the U.S. dollar, said
Rupert Rowling, market Analyst at Kinesis Money in a note.
    "Gold will need a fresh catalyst to push it higher than the
elevated level it is already trading at."
    Elsewhere, spot silver  XAG=  rose 0.6% to $23.81 per ounce,
platinum  XPT=  dropped 1.5% to $1,041.63 while palladium  XPD= 
was down 2.7% to $1,696.50.
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 (Reporting by Seher Dareen in Bengaluru; Editing by Elaine
Hardcastle and Krishna Chandra Eluri)
 ((Seher.Dareen@thomsonreuters.com; If within U.S. +1 646 223
8780;))

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