Gold Prices Hover Near 2000 Awaiting Fed Cues And Cpi Data

 Gold Prices Hover Near 2000 Awaiting Fed Cues And Cpi Data

Gold Prices Hover Near $2000 Awaiting Fed Cues And CPI Data

On Tuesday, the gold prices continued to hover just below $2000 (recent highs) as the markets waited for fresh impetus from the Fed and the inflation data.

We will also be getting the March meeting minutes of the Fed during this week, which will tell us what the Fed is thinking about the economy.

Gold On Backfoot After NFP Report

The gold prices were supported by a weak sentiment, safe-haven demand, and fear of slow economic growth. However, the recent NFP report has made the gold retreat from its recent highs as there is fear of more rate hikes.

Looking ahead, the markets are waiting for the data from the U.S. CPI (Consumer Price Inflation). This index will provide clarity on whether more rate hikes are coming from the Fed or not!

If the Fed votes in favor of rate hikes, that would be bad news for the gold! So far, the interest rate forecasting is pointing towards a rate hike during May!

At the time of writing this, spot gold was trading near $1993.94 while the gold futures were trading near $2008.95.

According to experts, the Fed's March meeting minutes are also long-awaited within the next few days. The meeting minutes will tell us more information on why the Fed raised interest rates despite the looming banking crisis.

After the collapse of a few US banks, there were hopes that the Fed will also slow down or stop its rate hike policy. But now, the market is looking for at least 1 additional rate hike during the month of May!

Although the baking crisis was averted, there's still fear in the markets which keep the gold markets supported. After all, the recent banking crisis was very unexpected which made the markets nervous and question the integrity of the banking sector.

For the day, other precious metals were also well bid such as the Silver futures and Platinum futures.

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