Gold prices held steady on Tuesday as investors looked for more cues on when the US central bank will cut interest rates from this week’s Federal Reserve policy meeting and economic data releases.
Spot gold was little changed at $2,385.13 per ounce, as of 0353 GMT.
US gold futures rose 0.2% at $2,382.10.
The Fed is expected to hold rates steady at the end of its two-day meeting on Wednesday, but open the door to policy easing as early as September by acknowledging inflation has edged nearer to its 2% target.
Investors will also keep a tab on a series of employment data scheduled to be released this week, with the main focus on the nonfarm payrolls report due on Friday.
“The tone of the Fed meet and Friday’s jobs report could pull the rug out from underneath the US dollar if investors start to price in more rate cuts between now and year-end,” said Tim Waterer, KCM Trade’s chief market analyst.
Gold price per tola gains Rs200 in Pakistan
“Any moves lower in the dollar would likely provide a boon to gold, which could again see levels north of $2,400.”
Lower interest rates reduce the opportunity cost of holding the non-yielding bullion. The Bank of England and the Bank of Japan’s policy meetings are also scheduled for this week.
Among other metals, spot silver fell 0.1% to $27.84 per ounce.
If silver prices stay above $25 for the rest of the year, it is unlikely that Indian imports will meaningfully pick up aside from surges on dips as seen in the past, analysts at Heraeus said in a note.
“This could result in a contraction in Indian jewellery and silverware fabrication demand for a second year in a row,” analysts added.
Platinum was nearly flat at $947.64 and palladium dipped 0.2% to $901.68.
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