Gold prices remained stable on Tuesday and are poised for a third straight monthly gain as market participants await the US Federal Reserve’s policy decision and non-farm payrolls data due later in the year. week for interest rate guidance.
FUNDAMENTALS
* Spot gold was unchanged at $2,334.92 an ounce at 0124 GMT. U.S. gold futures were down 0.5% at $2,346.00 an ounce.
* Bullion prices have gained 4.6% since the start of the month.
* Markets are focused on the Fed’s two-day policy meeting that begins later today and nonfarm payrolls data due Friday. The Fed is expected to keep its benchmark interest rate between 5.25% and 5.5% at the meeting.
* With inflation showing no recent signs of slowing or reducing its magnitude, Fed policymakers will face the question this week of how to characterize their next steps.
* A higher-than-expected consumer price inflation report for March prompted traders to reduce expectations of a Fed rate cut.
* Rising interest rates reduce the benefit of holding bullion without yield.
* Analysts have raised their gold price forecasts for 2024, expecting simmering geopolitical issues to prompt investors to flock to the safe-haven asset and for prices to beat record highs. records as central banks strengthen their reserves.
* Analysts and traders have lowered their price forecasts for platinum and palladium in 2024 due to weak demand from the automotive sector, but they still expect platinum prices to rise in 2025, according to a Reuters poll.
* Spot silver fell 0.1% to $27.09 an ounce, platinum rose 0.6% to $952.45, while palladium lost 0.2% to $972, $68.
DATA/EVENTS (GMT) 0130 China NBS Manufacturing PMI April 0145 China Caixin Mfg PMI Final April 0530 France GDP Preliminary QQ Q1 0645 France CPI (EU Norm) Prelim YY April 0645 France Producer Prices YY March 0755 Germany Unemployment Rate, Chg SA April 0800 Germany GDP Flash QQ SA, YY NSA Q1 0900 EU HICP Flash YY April 0900 EU HICP-X F, E, A& T Flash MM, YY April 0900 EU HICP-X F, E, A& T Flash MM, YY April 0900 EU HICP -X F, E, A& T Flash MM, YY April 0900T Flash MM, YY April 0900 EU GDP Flash Prelim YY, QQ Q1 1400 US Consumer Confidence April U. Federal Open Market Committee Begins Meeting two days on interest rates.
