Although gold is a hedge against inflation, high interest rates undermine the attractiveness of the precious metal, which pays nothing.
Data on consumer prices in the United States are due on Wednesday.
Investors are now 85.7% expecting the US central bank to keep interest rates unchanged in June, after its chairman, Jerome Powell, said last week that monetary policy decisions would be based on data, while hinting at the possibility of a temporary halt in rising interest rates.
On the other hand, concerns about the US banking sector persist, as the International Monetary Fund’s chief economist, Olivier Gorencha, has said that “the story is not over yet”, and concern about the turmoil in the banking sector lately continues. , despite the measures taken by the American authorities and the Swiss subsidiaries to deal with the banks in difficulty.
The U.S. Federal Reserve released a survey of top U.S. credit officials, which showed banks’ concern about future conditions, with a focus on the slowing economy and deposit outflows.
Building on that concern, U.S. banks tightened lending standards in the early months of this year, in an approach the Fed plans to continue through 2023.
price movements
Spot gold rose 0.5% to $2030.43 an ounce by 1021 GMT, and U.S. gold futures rose 0.2% to $2037.90 l ‘ounce.
As for other precious metals, platinum rose 0.6% to $1,076.77 an ounce, palladium rose 0.4% to $1,559.74 an ounce and silver ended lower. spot trades at $25.56 an ounce.
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