Gold prices remained stable near $2,310 per ounce as traders positioned ahead of major index rebalancing and a batch of pivotal US economic reports. The XAU/USD spot price fluctuated within a narrow range, while GLD and GDX showed muted movement amid cautious market sentiment.
- Gold held near $2,310 per ounce amid anticipation of index rebalancing and US economic data
- XAU/USD remained within a tight range, reflecting cautious trader positioning
- GLD traded at $57.80 per share, indicating stable institutional exposure
- GDX rose 0.3% to 68.45, signaling modest recovery in gold mining equities
- Upcoming PCE and jobless claims data may influence rate expectations and gold’s trajectory
- Index rebalancing expected to generate passive flows into gold-linked instruments
Gold stabilized around $2,310 per ounce on Tuesday, with the XAU/USD spot index trading flat despite heightened anticipation for index rebalancing events and upcoming US economic data releases. Market participants are closely monitoring the Federal Reserve’s preferred inflation gauge, the PCE price index, and jobless claims data due for release later in the week, both of which could influence interest rate expectations. The precious metal has been under pressure this month, down nearly 3% since early December, but recent technical support near $2,300 has helped prevent further decline. The GLD exchange-traded fund, a benchmark for gold exposure, held steady at $57.80 per share, reflecting consistent institutional positioning. Meanwhile, the GDX gold miners index edged up 0.3% to 68.45, indicating slight recovery in risk appetite for junior and mid-tier mining equities. Analysts note that the upcoming rebalancing of major indices, including the S&P 500 and MSCI Emerging Markets, is expected to trigger passive fund flows into gold-related assets, potentially providing a tailwind for both XAU/USD and GLD. Historical patterns suggest that safe-haven demand surges during trade tensions, with recent progress in US-China negotiations limiting the need for capital flight into gold. Still, geopolitical uncertainty in Eastern Europe and persistent inflation concerns continue to support underlying demand. With the Federal Reserve maintaining its restrictive policy stance, bond yields remain elevated, capping gold’s upside potential in the near term.