Gold prices saw a slight increase on Wednesday as investors eagerly await key US economic data that could influence the Federal Reserve's monetary policy. Spot gold climbed 0.3 per cent to $2,416.62 per ounce, while US gold futures gained 0.4 per cent to $2,417.10. Market participants are closely watching the release of second-quarter GDP figures on Thursday and the June personal consumption expenditures (PCE) price index on Friday. This data will provide crucial insights into the potential timeline for interest rate cuts. "If either the GDP or core PCE figures produce an upside beat, this could provide a stumbling block for gold in the short term on dollar strength," said Tim Waterer, KCM Trade's chief market analyst. However, he added that the overall outlook for gold remains positive due to growing expectations of a Fed rate cut. A recent Reuters poll revealed that a majority of economists predict two rate cuts this year, in September and December. This aligns with market sentiment, which has pushed gold prices to a record high of $2,483.60 last week. Lower interest rates typically boost gold's appeal as a non-yielding asset. Technical analysts have also expressed optimism. Reuters technical analyst Wang Tao suggests that gold prices could break resistance at $2,417 and potentially rise to $2,432. Meanwhile, India's decision to reduce import duties on gold and silver from 15 per cent to six per cent has been seen as a positive development for the bullion market. As the world's second-largest gold consumer, India's move is expected to stimulate jewelry manufacturing and further support gold demand. Silver also experienced a modest gain, rising 0.2 per cent to $29.28 per ounce. Platinum climbed 0.3 per cent to $945.73, while palladium held steady at $925.64. Attribution: Reuters
