Gold falls, investors awaited indicators from US Central Bank

Gold prices fell on Tuesday as the dollar rose, while investors awaited the Federal Reserve meeting for more indications about when to cut interest rates this year.

By 0659 GMT, the price of gold in spot transactions fell 0.2% to $2,156.67 per ounce, and US gold futures fell 0.2% to $2,159.80.

According to Reuters, the dollar rose 0.2% to its highest level in nearly two weeks, which increases the cost of gold for holders of other currencies.

With high expectations that the Federal Reserve will keep interest rates unchanged at the two-day monetary policy meeting that concludes on Wednesday, the market is awaiting updated expectations related to the economy and interest rates from policymakers.

Tim Waterer, chief market analyst at KCM Trading, said, “Gold remains above the support level at $2,150 an ounce, and as long as it can remain above this level, it may reap gains in the short term, based on Federal Reserve Chairman Jerome Powell’s statements this week.”

He added, “If the Federal Reserve focuses on the latest CPI and Producer Price Index data and the strength of the labor market, we could see some of those hopes for lowering interest rates diminish, and in this case we may see some kind of decline in gold below this support level and decline in the long term.” “The short one.”

Gold prices fell 1 percent last week after data showed a sharp rise in consumer prices in the United States in February and producer prices rose more than expected, dampening hopes for an early cut in interest rates.

High interest rates reduce the attractiveness of holding non-yielding gold.

Meanwhile, the Bank of Japan on Tuesday ended its eight-year negative interest rate regime and other measures that were part of its unconventional policy.

As for other precious metals, silver fell in spot transactions by 0.5% to $24.92 per ounce. Platinum also fell 0.8% to $905.18, and palladium fell 2.8% to $1,003.75.