GOLD prices were flat on Tuesday (Mar 19) as investors stayed on the sidelines ahead of the US Federal Reserve’s policy meeting this week that could offer further clues on the timing of likely interest rate cuts this year.
Spot gold was little changed at US$2,160.97 per ounce, as at 0126 GMT. US gold futures were flat at US$2,164.40.
Focus is on the outcome of the Fed’s two-day monetary policy meeting concluding on Wednesday. The US central bank is widely expected to hold rates steady, and the market is awaiting policymakers’ updated economic and interest rate projections.
Gold prices fell 1 per cent last week after data showed that US consumer prices increased solidly in February and producer prices rose more than expected, reducing hopes around early Fed rate cuts.
Higher interest rates reduce the appeal of holding non-yielding gold. Traders are currently pricing in about 51 per cent chance of a rate cut from the Fed in June, compared with 56 per cent on Monday, according to the CME FedWatch Tool.
The US dollar hovered near a two-week high against its rivals, making gold more expensive for other currency holders.
Apart from the Fed, central banks in Japan, England, Australia, Norway, Switzerland, Mexico, Taiwan, Brazil and Indonesia are all meeting this week, with most expected to stand pat on rates.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.18 per cent to 833.32 tonnes on Monday from 831.84 tonnes on Friday.
Spot silver gained 0.2 per cent to US$25.09 per ounce, platinum was steady at US$915.15 per ounce, and palladium slipped 1 per cent to US$1,022.21. REUTERS
