Gold traded slightly high on Thursday, halting the two-day decline from the highest level in a month on speculation that the Federal Reserve (Fed) could continue to reduce its asset purchases at its next meeting on January 28-29.
Gold Futures rose 0.40% higher to $1,243.30 per ounce at the time of writing, while the silver futures gained 0.48% standing at $20.22 per ounce at the same time.
In December, the Federal Reserve (Fed) decided to reduce its monthly bond purchases to $75 billion from $85 billion. Market participants are focusing on the next Fed meeting scheduled for January 28-29 for more hints.
The US dollar index dropped 0.06% lower to 80.981 points at the time of writing.
Assets in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 789.56 tones lower on Wednesday.
Gold – World Bank
The World Bank raised its global growth forecast on Tuesday, increasing its forecast to 3.2% this year, 3.4% by 2015 and 3.5% the year after.
The US gross domestic product (GDP) is forecasted to increase by 2.8%, while Japan and the eurozone will expand by 1.4% and 1.1% respectively.
Gold – US Data
The New York Manufacturing Index advanced 12.51 higher in January, rising above analysts forecast of 3.50 and compared to the previous reading of 2.22.
The US producer prices edged 0.4% higher on a month-to-month basis in December, rising from 0.1% recorded in the previous month.
The central bank’s Beige Book business survey, revealed the US economy continuous to grow at a moderate pace across most of the country.
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