Gold holds steady as investors focus on US Fed meeting

Tuesday,   30-Apr-2024   08:27 AM (IST)

Gold prices were steady on Tuesday and set for a third straight monthly gain, as market participants awaited the US Federal Reserve policy decision and non-farm payrolls data due later this week for interest rate cuts. Spot gold was unchanged at US$2,334.92 per ounce as at 0124 GMT. US gold futures were down 0.5 per cent at US$2,346.00 per ounce. Bullion prices have gained 4.6 per cent so far this month. Markets are focusing on the Fed’s two-day policy meeting starting later in the day and the non-farm payrolls data due on Friday. The Fed is seen holding its benchmark interest rate steady at 5.25 per cent to 5.5 per cent at the meeting. Inflation showing no recent sign of slowing or narrowing in scope leaves Fed policymakers challenged this week over how to characterise their next steps. A hotter-than-expected consumer price inflation report for March had prompted traders to dial back expectations for Fed rate cuts. Higher interest rates reduce the appeal of holding non-yielding bullion. Analysts raised their 2024 gold price forecasts, expecting simmering geopolitical woes to coax investors to seek refuge in the safe-haven asset and spur record-beating prices further as central banks bolster their reserves. Analysts and traders have downgraded their price forecasts for platinum and palladium in 2024 due to weak demand from the auto sector, but they still expect prices for platinum to rise in 2025, a Reuters poll showed. Spot silver fell 0.1 per cent to US$27.09 per ounce, platinum was up 0.6 per cent at US$952.45, while palladium lost 0.2 per cent to US$972.68.