2024.01.0409:19:00UTC+00Gold Rises As Dollar Dips From Three-week High

Gold prices rose on Thursday as heightened geopolitical tensions outweighed the latest Fed meeting minutes showing an unusual amount of uncertainty from officials about whether the economy is ready for rate cuts.

Spot gold rose 0.3 percent to $2,048.16 per ounce, while U.S. gold futures were up 0.6 percent at $2,055.50.

The dollar eased against a basket of currencies in European trade after hitting a three-week peak on Wednesday.

U.S. Treasury yields were mixed as investors awaited key economic data that could provide hints about the state of the world's largest economy.

Market participants now await U.S. reports on private sector employment and weekly jobless claims later in the day and Friday's closely watched monthly jobs report for additional clues on central banks' policies.

Interest rate cuts could be coming in 2024 but the timing and pace of the reductions in borrowing costs remain uncertain.

The Fed's next monetary policy meeting is scheduled for January 25-26, with no changes expected in rates.

CME Group's FedWatch Tool indicates there is a 64.8 percent chance the Fed could lower rates by a quarter point at its following meeting in March.