The prices of gold experience a drop this Monday from the threshold of 2,000 Dollarsas investors take a cautious stance in anticipation of the meeting Federal Reserve monetary policy from the United States this week. However, the demand for safe assets amid the conflict in the Middle East provides some support
Spot gold falls 0.6% and stands at US$1,993.71 per ounce. Meanwhile, US gold futures show an increase of 0.3% reaching $2,003.50.
The spot gold price reached a significant milestone on Friday by surpassing US$2,000 for the first time since mid-Mayreaching $2,009.29 per ounce.
Despite the decrease recorded during the day, Experts believe that this does not imply a change in the bullish trend of gold. Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, notes that “any major ceasefire can erode the $30-$50 (risk) premium on gold. Barring that, noor we see big drops in gold.”
Gold: the impact of war and the Fed meeting
The conflict in the Middle East continues to be an influential factor in the market, con reports of intense air and artillery attacks in Gaza by Israel and an ongoing ground invasion.
Investors now turn their attention to the US Federal Reserve’s next monetary policy decision, scheduled for Wednesday. Although the Fed is expected to keep interest rates unchanged, the focus will be on comments from Chairman Jerome Powell.
A Reuters poll indicates that inflationary pressures will continue to affect the global economy next year, suggesting that interest rates will remain elevated for an extended period.
As far as other precious metals are concerned, the silver spot remains stable at US$23.14, the platinum registers an increase of 1.3% reaching US$915.15, and the palladium it gains 1.1% reaching $1,134.45.
Source: Ambito
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