Gold prices locked in a narrow range, ahead of central bank ‎decisions

Gold prices stabilized today, Monday, at a time when investors are awaiting a meeting to be held this week by the Federal Reserve (the US Central Bank), during which it may indicate its intention to stop raising interest rates, starting in July.

There was little change in gold in spot transactions and it remained at $1960.01 an ounce by 0536 GMT, while US gold futures fell 0.2 percent to $1961.80.

According to “Reuters”, the dollar index fell, but remained near its highest level in more than a week, which it recorded on July 20, which limited the rise in gold, as the rise of the dollar makes the yellow metal more expensive for holders of other currencies.

Besides the US central bank, the European Central Bank and the Bank of Japan will also hold meetings this week. The market is awaiting the statements that will be issued by US Federal President Jerome Powell and European Central President Christine Lagarde regarding future movements.

Gold is very sensitive to rising interest rates because it increases the opportunity cost of holding bullion that does not yield returns.

As for other metals, silver rose in spot transactions by 0.1 percent to $ 24.6 an ounce, while platinum fell 0.1 percent to $ 960.78, and palladium decreased by the same percentage, to $ 1289.51.