Gold prices remain steady

22 May 2024 , 01:48 PM

Due to safe-haven buying and the expectation of interest rate reduction from the US Federal Reserve later this year, gold prices remained stable on Wednesday and remained above the crucial $2,400 mark that was touched earlier this week.

Spot gold continued to trade at $2,422.45 an ounce. On Monday, gold reached a record high of $2,449.89. Gold futures stayed at $2,426.00 unchanged.

Although recent statistics indicated that U.S. inflation had resumed its declining trend, a number of Fed governors remained cautious about prematurely lowering rates and rejected the idea that an increase was necessary.

Fed policymakers stated that before reducing interest rates, the US central bank should wait a few more months to make sure that inflation is actually returning to its target of 2%.

Even as pricing pressures subsided in late 2023, U.S. households were still feeling the pinch of inflation, with the majority of respondents reporting no improvement in their financial circumstances over the previous year.

More information about the timing of interest rate decreases that are generally anticipated may be found in the minutes of the Federal Reserve’s most recent policy meeting, which are anticipated at 1800 GMT.

Starting on May 23, the Shanghai Futures Exchange will increase the trading limit and margin requirements for contracts involving gold and silver.

Domestic investors are snatching up shares in a cheap stock market, encouraged by China’s latest actions and promises to strengthen the weakest aspects of its faltering economy, while the majority of foreign investors remain optimistic but cautious.

In other places, Israel called on “nations of the civilised world” to reject the request for arrest warrants against its leaders made by the prosecutor of the International Criminal Court and to state that they would not be obeyed.

Spot silver increased 0.4% to $32.08 an ounce, while palladium was unchanged at $1,025.75, platinum increased 0.4% to $1,050.50.

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