Gold finishes in green ahead of key economic readings

Gold prices trimmed their gains today, Jan. 23, as markets assessed expectations for major central banks to begin a monetary easing cycle, amid anticipation of the release of US domestic product data and the Federal Reserve’s preferred inflation gauge this week.

Bullion for February delivery gained 0.20%, or $3.60, to finish at $2,025.80 per ounce, after touching $2,039.30 an ounce in early trading.

Likewise, the US dollar index, which gauges the greenback's strength against a basket of six currencies, increased 0.35% to 103.69 points at 09:34 pm Makkah time, after falling to 102.98 points during the session.

Bill Gross, co-founder of Pacific Investment Management, called on the Fed to “stop winding down its balance sheet now, and start cutting interest rates in coming months to avoid recession.” It is aspired that the 10-year US bond yields drop to the 1-1.5% range, he added.

The Federal Reserve will lower interest rates four times this year, starting in March, and inflation is likely hit the US central bank’s 2% target by year-end, according to Joshua Schiffrin, Goldman Sachs Group Inc.’s Global Head of Trading Strategy.