Gold prices down in early trade

30 Mar 2023 , 10:46 AM

As the U.S. currency strengthened and a fears about the global banking system eased, gold prices weakened in early trade today. 

Spot gold was down 0.2% at $1,960.68 per ounce. Futures for U.S. gold decreased 0.3% to $1,962.10.

When the dollar index increased by 0.1%, gold became more expensive for buyers using other currencies.

Market players are looking for additional hints regarding the Federal Reserve’s monetary policy in the U.S. Personal Consumption Expenditures data, which is the Fed’s favoured inflation gauge. Friday is when the data is due.

Fed Vice Chair for Supervision Michael Barr said on Wednesday that the Fed will continue to decide on interest rates from meeting to meeting and will consider financial conditions along with other things.

Barr said that bank executives, Fed managers, and other regulators share responsibility for Silicon Valley Bank’s bankruptcy.

According to the CME FedWatch tool, markets expect the Fed to increase interest rates by 25 basis points in May.

Dropping energy costs will help the Bank of England (BoE) achieve its 2% inflation target, but persistent underlying inflation will make it difficult for the BoE to set monetary policy as the year goes on, said Catherine Mann, a member of the BoE monetary policy committee, on Wednesday.

Spot silver prices down by 0.3% to $23.29 an ounce, platinum prices decreased by 0.5% to $962.88, and palladium prices decreased by 0.2% to $1,436.85.

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