Gold Stagnant Ahead of Fed Decision

30 Jul 2024 , 10:04 AM

Tuesday saw investors searching for additional clues about the timing of the U.S. central bank’s interest rate cut from this week’s policy meeting and data releases, which caused gold to lose momentum.

Spot gold was down 0.1% at $2,380.31 an ounce. US gold futures barely moved, closing at $2,377.30.

After concluding a two-day meeting that began later in the day, the Federal Reserve is anticipated to keep rates unchanged while conceding that inflation has begun to approach its 2% target, so opening the door to policy easing as early as September.

Investors will also be monitoring a number of employment reports that are expected to be made public this week, with particular attention paid to the nonfarm payrolls report that is expected on Friday.

The opportunity cost of retaining the non-yielding bullion is decreased by lower interest rates.

This week, there are policy meetings being held by the Bank of Japan and the Bank of England.

Spot silver dropped 0.6% to $27.69 per ounce, along with other commodities.

Palladium fell 0.7% to $897.50 while platinum remained unchanged at $948.55.

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