Central Bank Meetings Loom, Gold Prices Stagnant

18 Mar 2024 , 09:55 AM

As the dollar maintained steady and investors prepared for a number of significant central bank policy meetings this week, including the U.S. Federal Reserve, gold failed to gain traction in the early Asian hours of Monday.

Spot price of gold was slightly altered at $2,156.69 per ounce. At $2,159.90, U.S. gold futures saw a 0.1% decrease.

The Federal Open Market Committee will meet for two days to discuss interest rates starting on Tuesday. On Wednesday, it will make the announcement about its rate choice and issue a statement.

Although it is expected that the Fed will maintain rates between 5.25% and 5.5%, given the stickiness of inflation at both the consumer and producer levels, it is possible that this signalling may indicate a higher-for-longer stance on policy.

Data released last week revealed that producer prices surged more than anticipated in response to a spike in the price of products like food and petrol, while U.S. consumer prices rose steadily in February.

Against its rivals, the dollar held steady close to a two-week high, driving up the price of gold for holders of other currencies.

It is anticipated that the Bank of Japan would abandon its extremely dovish monetary policies during its two-day meeting that concludes on Tuesday.

The markets see a possibility that the Swiss National Bank may soften this week, while the Bank of England is expected to keep steady on rates at its meeting on Thursday.

Spot silver was unchanged at $25.18, palladium increased 0.2% to $1,080.02, and spot platinum increased 0.2% to $935.15 per ounce.

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