Gold finishes in red on US dollar uptick

Gold prices closed in the red today, May 1, on an uptick in the US dollar following the release of several economic readings, in anticipation of the Federal Reserve’s monetary policy meeting on May 2-3.

Today's data showed that US manufacturing activity surged from a three-year low, with new orders improving slightly and employment rebounding in April. Further, construction spending saw a more-than-expected hike in March.

Financial markets are pricing in a more than 91% chance that the Fed will decide on lifting interest rates by 25 basis points during the forthcoming Federal Open Market Committee (FOMC) meeting, according to the CME FedWatch Tool.

Investors are awaiting Fed Chair Jerome Powell's remarks during his post-meeting press conference on May 3, looking for clues on the future stance of the central bank’s monetary policy amid the recent banking turmoil that posed threats of an imminent recession.

This will come prior to the issuance of the US monthly jobs report on May 5.

In terms of trading, gold for June delivery slumped 0.40%, or $6.90, to close today’s session at $1,992.20 an ounce.

On the other hand, the US dollar index, which gauges the greenback's strength against a basket of six currencies, eked out a 0.50% gain to reach 102.15 points at 8:44 pm Makkah time.