Jan 24 (Reuters) – Gold prices inched lower on Wednesday as strong U.S. economic data doused hopes for early interest rate cuts by the Federal Reserve, while investors awaited a slew of economic reports this week.
“That said, rising geopolitical tensions may limit its downside… with the $2,000 level on watch as near-term support to hold,” Rong said.
The dollar index (.DXY), opens new tab edged 0.2% lower, but hovered near a six-week high hit on Tuesday. Benchmark 10-year Treasury yield also slipped, but held above 4%.
In wider financial markets, Asian shares rose on optimism that Chinese authorities would offer support for its stock markets, which have plummeted to multi-year lows.
Market focus is on the U.S. flash PMI report due at 1445 GMT, fourth-quarter advance GDP estimates on Thursday, and personal consumption expenditures data on Friday.
Traders are pricing in five quarter-point Fed rate cuts in 2024, down from six cuts two weeks ago. Initially seen in March, the first cut is now expected in May with an 89% probability, according to LSEG’s interest-rate probability app IRPR, opens new tab.