ISLAMABAD: Gold prices fluctuated but slightly on Monday as the American dollar sheds some strength in the international market.
The yellow plate observed a slight change at $1,989.06 per ounce by 1204 GMT after experiencing a session low of $1,976.89. while U.S. gold futures lost 0.1% to $1,997.20.
The FOMC (Federal Open Market Committee) would meet on May 2-3, where investors largely expecting a 25 basis-point increase in the interest rate.
Chief market analyst at Exinity Han Tan said that spot gold has been finding backing around the upper-$1,900 levels as markets are unwilling to give up that Fed rate cuts are in store later this year.
Should the Fed confirm a pause in rate surge, that should be the catalyst for the return of the bullion back above the $2,000 level, he added.
Meanwhile, investors also took stock of JPMorgan Chase & Co.’s announcement saying that it acquired a substantial majority of assets and assumed First Republic Bank’s certain liabilities.
Traders’ Interest in Gold Prices
Gold prices rose more than 1% last month as concerns over uncertainty in the U.S. banking sector boosted its safe-haven appeal for investors.
However, if the Fed comes out unexpectedly hawkish, then it won’t bode well for gold,” said Ilya Spivak, head of global macro at Tastylive.
On the physical front, India’s gold imports from the UAE could increase with better use of a trade deal between the two countries, India’s Trade Secretary Sunil Barthwal told an event on Monday.
Spot silver rose 1% to $25.29, platinum gained 0.5% to $1,079.19, while palladium was little changed at $1,500.48.
