Gold traded unchanged by 07:25 GMT, as the absence of fundamentals from Europe and continuing protests in Egypt forced demand to drop, while investors await the release of the Fed's favorite gauge for inflation; the Core PCE.
Gold for immediate delivery traded at the opening levels of 1,388.25 an ounce where the metal set the highest so far at 1,345.90 an ounce and the lowest at 1,330.22 an ounce. Gold Futures dropped by 0.34 percent or $4.500 to trade at $1,337.200 an ounce
Major Market Movers
Inflation reports from the U.S. along with personal income and spending reports dominate the scene today with the absence of fundamentals from Europe. The Core PCE, which is the Fed's favorite gauge of inflation, probably will show a rise of 0.8 percent on the yearly scale in December.
Personal income and spending reports probably rose by 0.4% and 0.5% respectively, compared with the previous 0.4% and 0.3% reported in November.
The Fed left the benchmark interest rates at 0.25 percent during January's rate decision, as inflation remains below the bank's desired rate of 2.0 percent, therefore, with these expectations, gold prices will probably be less lenient to change dramatically over the course of this trading day.
A report showed that assets in exchange-traded platforms (ETP) fell by 31.0 metric tons, reaching 2,043.09 tons, marking the biggest drop in two-years. The IMF said last week that global growth will hover near 4.4 percent this year, compared with earlier outlook that suggested an expansion of 4.2 percent.
The Standard Chartered PLC report on commodities, released Tuesday stated that Strong economic data has improved confidence about the global outlook and reduced the need to hold gold and silver as a safe haven against credit risk, event risk and currency weakness, adding that We expect further weakness in both markets.
Gold Fixes & Dollar's Movement:
Talking about metal Fixes (Jan 28), Gold fixes at AM Fix was set at $1,316.00 an ounce, while the PM Fix was set at $1,319.00, meanwhile silver fixing was set at $26.68000 an ounce and Platinum AM Fixing was set at $1,790.00 an ounce, reaching 1,784.00 by PM fixing, finally the Palladium AM fixing was set at $803.00 at the AM fixing while being set by PM fixing at $806.00 an ounce.
The US dollar index, which tracks the performance of the dollar against six-majors, dropped on the daily scale to trade at 78.07, compared with the opening levels of 78.15 where it managed to reach a low of 78.06 and a high of 78.17.
Silver for immediate delivery also remained unchanged at 28.00, while setting a high of 28.41 an ounce and a low of 27.74 an. Silver future contracts traded higher by 0.15% or 0.041 to trade at 27.960 an ounce
Platinum for immediate delivery traded lower by $3.50, at $1,794.00 an ounce, Palladium rose by $3.50 to trade at $814.50 an ounce.