April 5 (Reuters) – Gold prices hovered near record highs seen in 2020, trading steady above the key $2,000 level on Wednesday, as the dollar eased after weak U.S. economic data fanned expectations that the Federal Reserve might loosen its monetary policy trajectory.
FUNDAMENTALS
* Spot gold held its ground at $2,020.39 per ounce, as of 0123 GMT. U.S. gold futures were steady at $2,037.20.
* The dollar index was down 0.1%, making bullion cheaper for buyers holding other currencies.
* Gold prices rallied 2% to hit their highest in more than a year on Tuesday after another round of weaker U.S. economic data indicated a slowing economy and strengthened expectations of a less-aggressive Fed policy.
* Data showed U.S. job openings in February dropped to the lowest level in nearly two years, suggesting the labor market was cooling. A separate report showed new orders for U.S.-manufactured goods fell for a second straight month in February.
* The Fed is seen done raising interest rates and starting to cut them in the summer.
* But Federal Reserve Bank of Cleveland President Loretta Mester said while the economy appears on a path toward slowing down, the U.S. central bank likely has more rate hikes ahead of it.
* While gold is traditionally considered a hedge against inflation and economic uncertainties, higher interest rates dim the appeal for non-yielding bullion.
* Spot silver eased 0.1% to $24.99 per ounce, while platinum was 0.2% higher at $1,020.47 and palladium edged up 0.1% to $1,458.51.
DATA/EVENTS (GMT)
0600 Germany Industrial Orders MM Feb
0600 Germany Manufacturing O/P Cur Price SA Feb
0600 Germany Consumer Goods SA Feb
0750 France S&P Global Serv, Comp PMIs March
0755 Germany S&P Global Serv PMI March
0755 Germany S&P Global Comp Final PMI March
0800 EU S&P Global Serv, Comp Final PMIs March
0830 UK Composite PMI Final March
0830 UK Reserve Assets Total March
1230 US International Trade Feb
1345 US S&P Global Serv, Comp Final PMIs March
1400 US ISM N-Mfg PMI March
Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips
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