Gold Prices Hold Steady Ahead of Fed Meeting and US Payrolls Data
LONDON, April 29 (Reuters) – Gold prices remained stable on Monday as investors anticipated the upcoming Federal Reserve policy meeting and U.S. non-farm payrolls data for potential policy indications.
Spot gold held steady at $2,338.08 per ounce by 0932 GMT, staying slightly above its 21-day moving average of $2,336.
Last week, gold saw a 2.2% drop amid diminishing expectations for early U.S. interest rate cuts in 2024. The market is now expecting only one cut this year, likely in November, according to the CME’s FedWatch tool.
Insight: Gold Bulls Maintain Long-Term Perspective
Despite the recent decline, gold bulls have maintained their position, with an established long position at much lower levels, according to Ole Hansen, head of commodity strategy at Saxo Bank. This indicates a continued bullish sentiment in the market.
Before the drop last week, gold had reached a record high of $2,431.29 on April 12, driven by strong central bank purchases and demand from Chinese retail investors amid a devalued yuan currency.
Insight: Citi Forecasts Higher Gold Price Floor Due to Chinese Demand
Citi noted that while there may be a seasonal decrease in Chinese demand in the near term, a stronger consumption trend through retail and People’s Bank of China channels is expected to support a higher gold price floor. The bank’s base case scenario predicts gold reaching $3,000 over the next 12-15 months.
Looking ahead, market focus is on the Federal Open Market Committee meeting scheduled from April 30 to May 1 and the release of U.S. non-farm payroll data on Friday. The Fed is anticipated to keep its benchmark interest rate steady at 5.25% to 5.5% during this meeting.
Silver rose 0.8% to $27.37 per ounce, bouncing back from a 5.2% decline last week. Spot platinum also saw an increase of 1.3% to $927.70, while palladium added 0.2% to $956.32.
(Reporting by Polina Devitt; additional reporting by Sherin Elizabeth Varghese and Ashitha Shivaprasad in Bengaluru; Editing by Vijay Kishore)
