Gold Prices Steady Ahead of Federal Reserve Meeting and Key U.S. Data
Gold prices remained largely unchanged on Tuesday as investors awaited the Federal Reserve's policy meeting and a series of U.S. data releases that could provide more clarity on the timing of potential rate cuts.
As of 0023 GMT, spot gold was down 0.1% at $2,380.79 per ounce, while U.S. gold futures held steady at $2,378.00.
The Federal Reserve is expected to maintain interest rates at the conclusion of its two-day meeting, starting later today. However, it may signal the possibility of policy easing as early as September, given that inflation is approaching the Fed's 2% target. Traders are currently pricing in a quarter-point rate cut by the Fed in September. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold.
Recent data showed that the U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation measure, increased by 0.1% last month after remaining unchanged in May. This week, investors will also focus on a series of employment reports, including the Job Openings and Labor Turnover Survey, the ADP employment report, weekly jobless claims, and non-farm payrolls, for further economic indicators.
Additionally, the Bank of England and the Bank of Japan are scheduled to hold their policy meetings this week.
In other metals, spot silver fell 0.3% to $27.79 per ounce, platinum declined 0.2% to $947.10, and palladium was down 0.1% at $902.68. Russia's Nornickel, the world's largest palladium producer, has maintained its 2024 palladium production guidance at 2.296-2.451 million ounces.
