Gold prices rose during this moment of trading, today, Tuesday, strengthening their gains above $2,050 an ounce, as traders await the decision of the US Federal Reserve on key interest rates and statements from President Jerome Powell.
Traders are awaiting the US Federal Reserve’s policy outlook and key employment data this week, which is supporting gold prices, but prices are expected to rise slightly on the positive side on Tuesday due to geopolitical tensions in the Middle East.
The markets widely expect the Federal Reserve to keep interest rates unchanged at the two-day monetary policy meeting that begins later today, but the focus will be largely on Powell’s comments on Wednesday. The decline in interest rates reduces the opportunity cost of holding gold.
The markets are likely to keep the Federal Reserve’s interest rates unchanged at the policy meeting scheduled to be held tomorrow, Wednesday, by 97.4%, with expectations for the start of monetary easing in May rising to 51.2% from 11.3% a month ago.
The Conference Board Consumer Confidence Index is expected to be released in the United States today, Tuesday, with data on the US labor market, such as the number of available jobs, to be announced before the “ADP” report on the change in private sector jobs.
Gold and the dollar now
Gold futures are now up 0.6% to $2,056 an ounce.
The spot gold contracts are up about 0.3% to $2,038 an ounce.
On the other hand, the dollar index fell 0.1% to 103.3 points.
Other metals
The spot price of silver remained at $23.20 an ounce.
Platinum fell 0.1% in spot trading to $925.78 an ounce, while palladium fell 0.3% to $980.70.
Oil prices rise amid geopolitical concerns in the Middle East
Oil prices rose in early trading on Tuesday as supply concerns continued amid escalating geopolitical tensions in the Middle East
The oil market remains on edge amid growing concerns about oil supplies, as Washington pledged to take “all necessary measures” to defend its forces following a deadly drone attack in Jordan carried out by Iran-backed militants, the first incident in which US military personnel have been killed since the start of the Gaza war.
In addition, the attack on a Trafigura oil tanker in the Red Sea at the beginning of the week increased the risks of supply disruptions, while the risk of the United States being drawn into the conflict is also increasing.
The gains in oil prices also come ahead of the Federal Reserve’s (US central bank) interest rate decision, as the Federal Open Market Committee begins a two-day meeting on Tuesday.
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