Gold prices were in a tight range on January 30 as traders awaited the US Federal Reserve's decision on key policy rates and remarks from Chair Jerome Powell.
Spot gold held its ground at $2,034.67 per ounce by 0633 GMT. US gold futures rose 0.4% to $2,033.50.
Traders are waiting for the US Fed policy outlook and key jobs data this week, and that is consolidating gold prices, but prices can be expected to edge slightly on the positive side on Tuesday due to geopolitical tensions in the Middle East, said Ajay Kedia, director at Kedia Commodities in Mumbai.
Also Read:
Markets widely expect the Fed to stand pat on rates at its two-day policy meeting that starts later in the day, but attention will largely be on comments from Powell on January 31.
Traders are betting on five quarter-point rate cuts for 2024 in the US, with the first of those arriving at a coin flip chance in March, according to LSEG's interest rate probability app IRPR.
A Reuters poll showed on Monday that uncertainty about the economy and US interest rate cuts could drive record gold prices in 2024.
Lower interest rates decrease the opportunity cost of holding bullion.
The dollar index weakened 0.1%, which generally makes gold more attractive to other currency holders. Yields on the benchmark U.S. Treasury note hit a two-week low of 4.0430%.
Spot silver was steady at $23.20 per ounce.
Analysts and traders have downgraded their price forecasts for platinum and palladium in 2024 as demand struggles to rise significantly, but they still expect prices for both to rebound from current levels.
Also Read: US stocks close at a new record high as inflation expectations hit the lowest in over 3 years
Spot platinum fell 0.1% to $925.78 an ounce, while palladium dropped 0.3% to $980.70.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | What does a low voter turnout indicate for NDA and I.N.D.I.A Bloc
Apr 29, 2024 5:48 AM
'Borrowed' leaders: Congress hits out at AAP for not fielding their own candidates in Punjab
Apr 28, 2024 9:53 PM
EC asks AAP to modify election campaign song and Kejriwal's party is miffed
Apr 28, 2024 9:25 PM