Gold prices were on track to post a second monthly increase on Friday as investors flocked to the safe-haven metal as markets shifted their attention to the upcoming Federal Reserve meeting.
By 0702 GMT, spot gold was down 0.2% to $1,983.89 per ounce but was still up nearly 1% for the month. Gold futures in the US dropped 0.2% to $1,995.30.
Rival dollar rose up on the day, detracting from the shine of gold, but was expected to drop monthly. Gold is more appealing to holders of foreign currencies when the dollar is weaker.
In light of the ongoing struggle to stay above $2,000 and usher in a new era, Clifford Bennett, chief economist at ACY Securities, predicted that gold buyers would likely continue to exercise some prudence going into the Fed meeting.
Bennett stated, “(but) from a safe-haven perspective, gold has been on the rise in recent times,” adding that the U.S. GDP slowed significantly and that difficulties remain for the world’s economies.
As the banking crisis developed, gold reached a high of $2,048.71, surpassing the previous year’s peak.
Ilya Spivak, the head of global macro at Tastylive, noted that $1,980 appears to be the immediate support level for gold.
The baseline forecast for Fed policy that is priced into financial markets has not changed as a result of recent lower data results, he continued.
The interest rate will likely increase by 25 basis points (bps), which will lessen the appeal of zero-yielding bullion.
Even while many central bankers claim the worst of the most recent stresses on the banking sector are subsiding, the United States’ economic growth slowed down in the first quarter more than was anticipated, and the Fed’s emergency lending to banks increased slightly in the most recent week.
The March core Personal Consumption Expenditures index data, which is coming at 12:30 GMT, is now awaited by investors.
Other metals headed for monthly gains included spot silver, which dropped 0.2% to $24.92, platinum, which dropped 0.5% to $1,071.71, and palladium, which rose 0.3% to $1,499.35.