Gold prices are showing a decline on Tuesday after several sessions of growth – the strengthening of the dollar before the release of economic data and signals from the US Federal Reserve put pressure on the precious metal. The current quote of the asset is $2040.75 per ounce. Yesterday, gold was trading near $2,060. Yesterday's growth was facilitated by the escalation of hostilities in the Middle East, which led to an increase in demand for precious metals. However, the dollar strengthened today in anticipation of comments from Fed Governor Christopher Waller on a possible interest rate cut this year. Traders are waiting for signals from the Fed regarding a rate cut in the spring. Data on consumer and producer inflation in the United States also provided mixed signals, which further fueled interest in the comments of the Fed governor. Data on industrial production and retail sales in the United States will be released on Wednesday. They will also have an impact on the market, as they can provide more information about the current state of the economy. Any signs of economic stability may give the Fed more reason to raise rates. In general, traders have somewhat tempered their hopes for a rate cut in March 2024, which has become a key factor for the rise in gold prices in recent weeks, as low interest rates make gold a more attractive asset.
