“We’re starting this week, and gold prices are changing very quickly,” said Bob Haberkorn, chief market expert at RGO Futures.
US CPI data for May is due on Tuesday and PPI on Wednesday, ahead of the Fed’s interest rate meeting later today.
Haberkorn said, “In fact, if the US central bank stops raising interest rates, it would push gold prices up sharply.”
The U.S. central bank is widely expected to suspend the tightening cycle throughout the year as officials assess the impact of raising interest rates to the highest level in 16 years.
Market expectations on the CME FedWatch Index point to a 74.7% chance that the Fed’s next move will be to stabilize interest rates, but given expectations for the next meeting, markets see a likelihood of 54.7% that the Fed will return to raise interest rates by 25 basis points, against the 30.2% chance that he will prove it again.
The European Central Bank will make the interest rate decision on Thursday and the Bank of Japan on Friday.
“Gold trades assuming US interest rates remain stable, but with any rally the precious metal will likely fall to $1,900 an ounce,” said Kinesis Money analyst Robert Rolling.
Regarding palladium, which has risen unlike other metals, Metals Focus analyst Jacob Smith said: “Palladium could reach over $1,500 in the fourth quarter of this year, thanks to the increase in the car production, although that is subject to change” to put pressure on the possibility of automakers withdrawing their inventories.
price movements
Gold fell 0.34% in spot trading to $1,954.29 an ounce by 4:40 p.m. GMT. US gold futures also fell 0.46% to $1,968.15.
As for other precious metals, silver fell 1.47% on spot to $24.05 an ounce, and platinum lost 1.5% to $993.58, registering a decline for the second consecutive month. .
However, palladium, used in automotive emission control devices, rose 0.6% to $1,345.06, after hitting its lowest level since May 2019 on Friday.
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