Gold prices remain stable in early trade

18 Jul 2023 , 11:52 AM

Early on Tuesday in Asian trading, gold prices struggled to gain traction as investors anticipated information from the U.S. Federal Reserve meeting scheduled for next week over the direction of its monetary tightening.

The spot price of gold remained slightly changed at $1,955.24 per ounce. Futures for U.S. gold increased by 0.1% to $1,958.80.

The dollar was stable at 99.88, not far from its lows of 99.58 in April 2022.

With rate reduction anticipated well into 2024, interest rate futures indicated that markets were pricing in another rate hike at the Fed’s meeting on 25–26 July. Jerome Powell, the chair of the Fed, had earlier emphasized the consensus opinion that two extra rate rises would be required.

In the central bank leadership’s final remarks before the prohibition on public comments ahead of the July meeting, Fed Governor Christopher Waller argued for tighter policy.

The opportunity cost of storing non-yielding bullion is reduced when interest rates are lower.

Treasury Secretary Janet Yellen stated on Monday that she did not anticipate a recession in the American economy.

In the second quarter, China’s economy expanded at a sluggish rate, putting pressure on policymakers to provide additional stimulus to support growth.

Spot silver prices decreased by 0.1% to $24.83 per ounce, platinum prices were stable at $976.07, and palladium prices increased by 0.1% to $1,284.91.

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