Jan 25 (Reuters) – Gold prices fell on Wednesday, retreating from a nine-month peak a day earlier as the dollar stabilised, while investors recovered ahead of fourth-quarter US growth data.
Spot gold fell 0.61% to $1.925.71 per troy ounce by 13:35 Moscow time.
Palladium fell 1.11% to $1,723.84 an ounce, while silver fell 0.87% to $23.46 an ounce. Platinum fell 1.4% to $1,038.38.
The US Commerce Department is scheduled to release preliminary fourth-quarter GDP estimates on Thursday, which could set the tone for the Federal Reserve’s January 31-February 1 meeting.
Ricardo Evangelista of ActiveTrades said that the drop in quotes after hitting the highest level recorded a day earlier is the result of a technical correction, as investors closed positions to take profits before the release of the data.
“The overall sentiment is positive as the US Fed is expected to tighten further and announce a 25 basis point rate hike at next week’s meeting. If confirmed, such a scenario would have negative consequences for the dollar and Treasuries, but would support gold.”
The dollar index rose 0.13% to 102.055 against a basket of other currencies, making gold more expensive for holders of other currencies.
US business activity contracted for the seventh month in a row in January, but declines in the manufacturing and services sectors slowed for the first time since September.
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(Arundhati Sarkar in Bangalore)