Spot gold was unchanged at $2,338.08 per ounce by 0932 GMT, holding slightly above its 21-day moving average of $2,336
Reuters LONDON
Gold prices held steady on Monday as investors waited for the Federal Reserve policy meeting and US non-farm payrolls data due this week for policy clues.
Spot gold was unchanged at $2,338.08 per ounce by 0932 GMT, holding slightly above its 21-day moving average of $2,336.
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Gold fell by 2.2% last week amid fading expectations for early US interest rate cuts this year. Investors are now only confident about a single cut this year, most likely in November, according to the CME’s FedWatch tool. [FRX/]
“Gold bulls bought into last week’s weakness, protecting a long elevated established at much lower levels,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Before last week’s fall, five previous weeks of growth saw gold hitting a record high of $2,431.29 on April 12, amid strong purchases by central banks and demand from Chinese retail investors amid a weaker yuan currency.
“A seasonal pullback in (Chinese) regional demand is likely into mid-2024, but a structurally stronger consumption trend via the retail and PBOC (People’s Bank of China) channel is supportive of a higher gold price floor,” Citi said in a note .
Its base case scenario sees gold hitting $3,000 over the next 12-15 months.
Markets are focusing on the Fed’s policy meeting from April 30 to May 1 and the US non-farm payroll data due on Friday. The Fed is seen holding its benchmark interest rate steady at 5.25% to 5.5% at this meeting.
Spot silver rose 0.8% to $27.37 per ounce. The metal fell by 5.2% last week before finding buy-side support at below the $27.00 mark, said Frank Watson, market analyst, Kinesis Money.
Spot platinum was up 1.3% to $927.70, while palladium added 0.2% to $956.32.
