As the dollar remained strong as investors prepared for a series of important central bank policy meetings this week, which are anticipated to result in a pause in interest rate increases by the U.S. Federal Reserve, gold prices moved lower in early Asian trade on Monday.
Spot gold had decreased 0.1% to $1,957.92 per ounce. Futures for U.S. gold decreased 0.2% to $1,972.60.
For the week that concluded on Friday, gold prices increased 0.7%, boosted by a more than 1% increase on Thursday following a spike in U.S. weekly jobless claims.
Attention now shifts to the publication of statistics for the U.S. producer and consumer pricing indices on Tuesday and Wednesday, respectively.
When the U.S. central bank’s two-day meeting concludes on Wednesday, there is a 71.2% chance that it will maintain its benchmark overnight interest rate in the 5.00%-5.25% range.
Safe-haven gold often performs better during uncertain times, and lower interest rates further increase the appeal of the zero-yield commodity.
The Bank of Japan is anticipated to retain its ultra-loose monetary policy and its forecast for a mild economic rebound at a two-day policy meeting that ends on June 16, sources said, as strong corporate and consumer spending soften the impact from declining international demand.
Last week, there was less demand for physical gold in China and India, which forced dealers to lower prices, and caused buyers to put off purchases in India due to unstable prices.
The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust GLD, reported that its holdings decreased by 0.31% to 931.76 tonnes on Friday from 934.65 tonnes on Thursday.
Silver spot prices fell 0.2% to $24.2274 per ounce, and platinum prices fell 0.3% to $1,005.49. Palladium fell more than 4% on Friday and was unchanged at $1,322.88.
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