Tuesday, 19 March 2024 10:04 WIB | GOLD |GOLDEMAS

Gold held steady on Tuesday as investors stayed on the sidelines ahead of the U.S. Federal Reserve policy meeting this week, which could offer further clues on the timing of likely interest rate cuts this year.

Spot gold was up 0.1% at $2,161.79 per ounce, as of 0237 GMT. U.S. gold futures edged 0.1% higher to $2,165.30.

With the Fed widely expected to hold rates steady at the end of its two-day monetary policy meeting on Wednesday, the market is awaiting policymakers’ updated economic and interest rate projections.

Gold prices fell 1% last week after data showed that U.S. consumer prices increased solidly in February and producer prices rose more than expected, reducing hopes around early Fed rate cuts.

Higher interest rates reduce the appeal of holding non-yielding gold. Traders are currently pricing in an about 51% chance of a Fed rate cut in June, compared with 56% on Monday, according to the CME FedWatch Tool.

Apart from the Fed, central banks in Japan, England, Australia, Norway, Switzerland, Mexico, Taiwan, Brazil and Indonesia are also meeting this week, with most expected to stand pat on rates.

Spot silver gained 0.4% to $25.13 per ounce, platinum eased 0.3% to $915.60, palladium slipped 0.8% to $1,024.16.

Source : Reuters