By Ashitha Shivaprasad
(Reuters) -Gold struggled for momentum on Tuesday as investors looked for more cues on when the U.S. central bank will cut interest rates from this week’s policy meeting and data releases.
Spot gold was down 0.1% at $2,380.31 per ounce, as of 0156 GMT. U.S. gold futures were little changed at $2,377.30.
The Federal Reserve is expected to hold rates steady at the end of its two-day meeting starting later in the day, 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 U.S. dollar if investors start to price in more rate cuts between now and year-end,” said Tim Waterer, KCM Trade’s chief market analyst. [USD/]
“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 are also holding policy meetings this week.
Among other metals, spot silver fell 0.6% to $27.69 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,” the analysts said.
Platinum was flat at $948.55 and palladium dipped 0.7% to $897.50.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu)
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