Gold prices firm amid caution ahead of US Central Bank ‎meeting

Gold prices stabilized today, Tuesday, as dealers cautiously await new signals from major central banks regarding their monetary policy plans, especially the Federal Reserve (US Central Bank).

There was little change in gold in spot transactions, to record $1983.89 an ounce by 0652 GMT.

According to Reuters, US gold futures settled at $1,992.10

It is widely expected that the Federal Reserve, which meets on the second and third of May, will raise interest rates by 25 basis points.

Ajay Kedia, a board member of Kedia Commodities in Mumbai, said gold prices could move towards the $2,000 level if the Federal Reserve highlights recession fears and hints at a temporary halt to the rate hike cycle.

The European Central Bank is also likely to raise interest rates for the seventh time in a row at its meeting on Thursday

On Monday, gold prices exceeded the level of two thousand dollars for a short time, after regulators announced the confiscation and sale of the assets of First Republic Bank to JP Morgan Bank in a deal to confront the largest US banking crisis since the financial crisis in 2008.

“We expect quiet movements for gold and to decline during 2023 as the stimulus measures in China begin to take effect … the measures will reduce the perceived need to hold more stable assets such as gold,” said Michael Langford, director at AirGuide Consulting.

As for other precious metals, silver fell in spot transactions by 0.4 percent, to $ 24.88 an ounce.

“We feel confident in silver given the expected high industrial demand for it in 2023,” Kedia said. Their prices can reach $32.”

Platinum fell 0.1% to $1,049.15, while palladium rose 1% to $1,466.26.