By Sherin Elizabeth Varghese
(Reuters) – Gold prices were little changed on Monday ahead of the U.S. Federal Reserve’s policy decision and a series of other central bank meetings this week.
Spot gold was up 0.2% at $2,159.32 per ounce, as of 1311 GMT after hitting its lowest level since March 7 earlier in the session. U.S. gold futures rose 0.1% to $2,163.00.
“Gold traders are set to remain highly sensitive to what Fed Chair Jerome Powell might say about the Federal Open Market Committee’s (FOMC) thinking surrounding a potential June rate cut,” Han Tan, chief market analyst at Exinity Group, said.
“Should the FOMC’s latest dot plot pencil in fewer than three 25-basis point rate cuts in 2024, that should prompt the precious metal to unwind more of its month-to-date gains.”
Higher interest rates reduce the appeal of holding non-yielding gold.
Traders mostly expect the U.S. central bank to hold interest rates unchanged at the end of a two-day policy meeting on Wednesday, and are pricing in a 59% chance of a rate cut in June.
Bullion hit a record high of $2,194.99 on March 8, but fell 1% last week after data showed U.S. consumer prices increased solidly in February and producer prices rose more than expected.
Spot gold may fall into a range of $2,126-$2,131 per ounce as suggested by its wave pattern and a bearish pennant, according to Reuters’ technical analyst Wang Tao. [TECH/C]
The Bank of Japan is expected to end its negative interest rate policy at its two-day meeting ending on Tuesday. The Bank of England will hold its meeting on Thursday and is expected to stay put on rates.
Spot silver rose 0.5% to $25.29, platinum fell 1.3% to $921.08 per ounce and palladium dipped 1.9% to $1,057.05.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Mrigank Dhaniwala and Shounak Dasgupta)
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