FX.co ★ Gold Holds Steady As Dollar Declines On Weak US Data

Gold prices were flat to slightly higher on Wednesday as the dollar weakened after the release of weak economic data.

Spot gold was marginally higher at $1,997.88 per ounce, while U.S. gold futures were up 0.2 percent at $2,008.40.

The dollar eased and Treasury yields dipped after a measure of U.S. consumer confidence hit a nine-month low and the Richmond Fed manufacturing index showed contraction for a fourth straight month, raising the possibility of an imminent recession.

Concerns about turmoil in the banking sector also weighed on the dollar after First Republic reported a loss of more than $100 billion in deposits in the first quarter.

Trading later in the day may be impacted by reaction to the latest earnings news as well as the Commerce Department's report on durable goods orders in the month of March.

U.S. GDP data due on Thursday is expected to show that growth slowed in the first quarter.

Traders also cautiously await a slew of upcoming central bank meetings, most notably the U.S. Federal Reserve, the Bank of England and the European Central Bank, due over the next two weeks.

The Bank of Japan (BOJ) is likely to keep its monetary policy steady on Friday.