In anticipation of the Federal Reserve’s meeting this month and growing expectations for a slowdown in interest rate hikes, gold prices remained subdued on Tuesday as investors awaited additional indicators of the health of the American economy.
Fundamentals
By 00:58 GMT, spot gold remained unchanged at $1,937.58 per ounce, down from one-month highs reached on Friday. U.S. gold futures decreased 0.2% to $1,963.40 as trade was light on Monday due to a holiday in the country.
In comparison to its rivals, the U.S. dollar index was down 0.1%.
A survey released on Monday revealed that investor sentiment in the euro zone declined more than anticipated at the beginning of September as Germany’s economic difficulties continued to be a significant drag on the region.
As divergent growth outlooks and inflation threats clouded the future, central banks in the world’s largest developed and developing nations took a pause in August, slowing down the pace and magnitude of interest rate increases.
Goushi Kataoka, a former board member, stated on Monday that the Bank of Japan (BOJ) will only be able to progressively move away from its easy monetary policy if it has made sure its 2% inflation goal has been consistently reached.
The 3.9 billion yuan ($536 million) extension on onshore debt payments struck by Country Garden with its creditors on Monday helped the developer’s stock rise and provided the crisis-stricken Chinese real estate market with much-needed relief.
The price of spot silver was down 0.1% to $23.94 an ounce, the price of platinum dropped 0.6% to $948.20, and the price of palladium was unchanged at $1,221.45.