Gold prices have declined amid concerns about the interest rate

Gold prices continued to decline on Wednesday, remaining in a narrow range near $2,035 per ounce. There is still concern in the market about the high interest rate in the United States ahead of the release of important economic data.

The precious metal continues to trade within the range set over the past month from $2,000 to $2,050 per ounce. However, possible price increases remain limited due to a number of warnings from the US Federal Reserve System, which indicate that the bank is in no hurry to start cutting rates in early 2024. The strengthening of the dollar, which remains close to its three-month high, also puts pressure on prices.

Nevertheless, gold prices continue to hold above the key support level of $2,000 per ounce, which may indicate continued interest in this precious metal amid concerns about a slowdown in global economic activity and geopolitical tensions.

The market is looking forward to the release of important data on inflation and economic growth in the United States to receive additional signals for trading. The figures for the Personal Consumption Price Index (PCE), the Fed's preferred inflation indicator, will be presented on Thursday, and they are expected to show a stable inflation rate in January. This scenario may encourage the Fed to keep interest rates high for a longer period.

Later on Wednesday, the second report on US GDP for the fourth quarter will be published, which, according to forecasts, will show a slight slowdown in economic growth.

Although higher interest rates are putting pressure on gold, increasing the opportunity costs of buying it, other precious metals have also declined against this background. Platinum futures fell 0.5% to $892.05 an ounce and silver futures fell 0.7% to $22,602 an ounce on Wednesday.