2023.03.3017:56:00UTC+00Gold Futures Settle Higher As Dollar Turns Weak

Gold prices climbed higher on Thursday as the dollar turned weak, after having bounced back in the previous session after posting losses earlier in the week.

The dollar shed ground as risk sentiment improved amid receding worries about the global banking sector.

CME Group's FedWatch Tool currently indicates a 48.9% chance the Fed will leave rates unchanged at its next meeting in early May and a 51.1% chance of a 25 basis point increase.

The dollar index, which dropped to 102.07 around mid morning, recovered a bit subsequently, but remains weak at 102.22, down more than 0.4% from the previous close.

Gold futures for June ended higher by $13.20 or about 0.7% at $1,997.70 an ounce.

Silver futures for May ended up $0.523 at $23.989 an ounce, while Copper futures for May settled at $4.0915 per pound, gaining $0.0050.

Data released by the Labor Department this morning showed initial jobless claims rose to 198,000 in the week ended March 25th, an increase of 7,000 from the previous week's unrevised level of 191,000. Economists had expected jobless claims to inch up to 196,000.

A separate report released by the Commerce Department showed the U.S. economy grew by slightly less than previously estimated in the fourth quarter of 2022.

The report said real gross domestic product shot up by 2.6% in the fourth quarter compared to the previously reported 2.7% jump. Economists had expected the pace of growth to be unrevised.