Spot gold was 0.2% higher at $2,388.65 per ounce and U.S. gold futures gained 0.3% at $2,385.30
Gold prices held firm on Tuesday as investors braced for Fed’s policy meeting and U.S. data that could offer more hints on the rate-cut timeline.
Spot gold was 0.2% higher at $2,388.65 per ounce, as of 0635 GMT. U.S. gold futures gained 0.3% at $2,385.30.
The Federal Reserve is anticipated to hold rates steady at the end of its two-day meeting on Wednesday, but open the door to policy easing as early as September by acknowledging inflation has edged nearer to its 2% target.
Investors will also keep a tab on a series of employment data set to be released this week, with the main focus on the nonfarm payrolls (NFP) report due on Friday.
The tone of the Fed meet and Friday’s jobs report could pull the rug out from underneath the U.S. dollar if investors start to price in more rate cuts between now and year-end, according to Tim Waterer, KCM Trade’s chief market analyst.
Any moves lower in the dollar would likely provide a boon to gold, which could again see levels north of $2,400, he added.
Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.
India’s gold demand in the June quarter declined 5% from a year earlier, but consumption in the second half of 2024 should improve due to a correction in local price following a sharp reduction in import taxes, the World Gold Council said.
Among other metals, spot silver added 0.1% to $27.89 per ounce.
If silver prices stay above $25 for the rest of the year, it is unlikely that Indian imports will meaningfully pick up aside from surges on dips as seen in the past, analysts at Heraeus stated in a note.
