Gold prices decline as rate cut hopes ease, focus shifts to upcoming Fed meeting
Gold and silver rate today on 29-04-2024: Check latest rates in your city “Of particular importance is the US interest rate decision, which is poised to strongly impact Gold. Anticipation of two rate cuts could provide support for gold, whereas emphasis on higher rates for a longer duration may exert pressure. Hence, the week ahead is anticipated to be pivotal for gold markets," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
An unexpectedly higher consumer price inflation report for March, released earlier this month, led traders to scale down their expectations for interest rate cuts by the Fed. The Fed's two-day policy meeting, commencing from April 30, is anticipated to conclude with the Fed maintaining its benchmark interest rate within the range of 5.25% to 5.5%, as indicated by the CME FedWatch tool. Elevated interest rates diminish the attractiveness of holding gold, which does not yield interest.
The upcoming release of U.S. non-farm payroll data on Friday is anticipated to garner significant attention as market participants seek further insights into the Federal Reserve's potential rate-cutting stance. Last week witnessed a 2.2% decline in gold prices, attributed to easing tensions in the Middle East and diminishing expectations for prompt interest rate reductions in the United States.
Also read: Gold prices end five-week rally on ease in Iran-Israel conflict, dent in US Fed rate cut buzz Concurrently, analysts, as indicated by a Reuters poll, revised their gold price projections for 2024 upwards. They anticipate that persistent geopolitical uncertainties will motivate investors to flock to the safe haven asset, potentially propelling prices to unprecedented levels. "Spot gold
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