May 3 (Reuters) – Gold prices held steady above Wednesday’s key $2,000 mark, with investors turning their attention to the U.S. Federal Reserve’s rate hike verdict due later in the day. I got
Spot gold held its position at $2,016.29 an ounce by 0140 GMT after gaining more than 1% in the previous session.
US gold futures rose 0.1% to $2,026.10.
The Fed’s interest rate decision is scheduled for 1800 GMT. The market mainly expects the US central bank to raise interest rates by 25 basis points.
“If the Fed unexpectedly pauses, this would indicate a deepening banking crisis, which would likely boost gold,” said Clifford Bennett, chief economist at ACY Securities.
Bullion is known as a hedge against inflation and economic turmoil, but high interest rates tend to make zero-yielding assets less attractive.
Data on Tuesday showed U.S. job openings fell in March and layoffs rose to their highest level in more than two years, suggesting a softening labor market.
The dollar will lose its luster and more light will fall on gold if uncertainty about the banking crisis and concerns about a potential US debt default continue.
The top US Senate Republican urged President Joe Biden on Tuesday to accept or oppose his party’s debt ceiling package, but the top Democrat said the Senate will attempt a “clean” debt ceiling hike next week. said it was possible.
Spot silver fell 0.2% to $25.33 an ounce.
Platinum fell 0.4% to $1,061.53 and palladium rose 0.4% to $1,434.62.
Analysts cut their forecasts for palladium as prices fell for the metal used to neutralize harmful engine emissions, but a Reuters poll said rising car production could limit sales. should be.
Reported by Ashitha Shivaprasad, Bangalore.Edited by Sherry Jacob Phillips
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