As investors sought clarification on whether the U.S. Federal Reserve would stop following a widely anticipated interest rate hike in May, gold prices were little moved on Tuesday.
Spot gold was unchanged at $1,994.85 per ounce. The price of U.S. gold futures stayed the same at $2,006.50.
On Monday, gold prices dropped to their lowest level in almost two weeks as expectations for a 25-basis-point rate hike by the Fed at its May meeting increased along with the currency and U.S. Treasury yields. The data showed that manufacturing activity in New York State had increased for the first time in five months.
According to the CME FedWatch tool, the probability of a 25 basis-point raise in May is now being priced in at 91%.
The confidence of American single-family homebuilders increased for a fourth consecutive month in April, according to additional data released on Monday.
Investors will closely monitor statements made by Fed officials this week as they prepare to go into a blackout period starting on April 22 ahead of the Fed’s meeting on May 2-3.
Although non-yielding bullion’s appeal is diminished by increased interest rates, gold is nevertheless regarded as a hedge against inflation and economic uncertainty.
The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.22% to 925.70 tonnes on Monday from 927.72 tonnes on Friday.
Spot silver fell by 0.4% to $25.01 per ounce while palladium increased by 0.1% to $1,561.36 and platinum climbed by 0.1% to $1,049.13.As investors sought clarification on whether the U.S. Federal Reserve would stop following a widely anticipated interest rate hike in May, gold prices were little moved on Tuesday.
Spot gold was unchanged at $1,994.85 per ounce. The price of U.S. gold futures stayed the same at $2,006.50.
On Monday, gold prices dropped to their lowest level in almost two weeks as expectations for a 25-basis-point rate hike by the Fed at its May meeting increased along with the currency and U.S. Treasury yields. The data showed that manufacturing activity in New York State had increased for the first time in five months.
According to the CME FedWatch tool, the probability of a 25 basis-point raise in May is now being priced in at 91%.
The confidence of American single-family homebuilders increased for a fourth consecutive month in April, according to additional data released on Monday.
Investors will closely monitor statements made by Fed officials this week as they prepare to go into a blackout period starting on April 22 ahead of the Fed’s meeting on May 2-3.
Although non-yielding bullion’s appeal is diminished by increased interest rates, gold is nevertheless regarded as a hedge against inflation and economic uncertainty.
The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.22% to 925.70 tonnes on Monday from 927.72 tonnes on Friday.
Spot silver fell by 0.4% to $25.01 per ounce while palladium increased by 0.1% to $1,561.36 and platinum climbed by 0.1% to $1,049.13.
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