Gold was little changed in spot trade, recording $1,983.29 an ounce at 0635 GMT, and US gold futures fell 0.1% to $1,991.
Market expectations widely indicate that the US Federal Reserve will raise interest rates by 25 basis points at its May 2-3 meeting. The CME FedWatch Index shows market expectations for the hike were 94.2%, down from just 5.8%. to keep it stable.
Friday’s data showed U.S. consumer spending was unchanged in March, while underlying inflationary pressures remained strong, spurring the Fed’s rate hike.
Ajay Kedia, a board member at Kedia Commodities in Mumbai, said gold prices could hit $2,000 if the Fed underlines recession fears and hints at a temporary halt to the rate hike cycle. .
The European Central Bank is also likely to raise interest rates for the seventh consecutive time at its meeting on Thursday, and market expectations are that it will raise them by 50 basis points.
Gold prices rose more than 1% in April as renewed concerns over the US banking turmoil pushed investors into safe havens.
As for other precious metals, silver fell in spot trades 0.4% to $24.87 an ounce, and platinum fell 0.1% to $1,048.34, while palladium rose 1% to $1466.36.
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