Comex Gold holds steady at $2164/oz as markets remain cautious before monetary policy statements from US, UK and Japan due this week, found yesterday- March 19, morning. Further, gold trend for the day had said, Comex Gold prices pared early losses and closed marginally higher on Monday, ahead of a slew of central bank decisions this week.
Gains in dollar index and treasury yields limited the upside in the non-yielding yellow metal. The US benchmark 10 year yields have been rising for the past six days as hotter than expected US CPI in January and February prompted traders to dial back bets on the pace and scope of monetary easing expected this year.
Geo-political tensions also remained high, boosting the allure for safe haven metal. A record win secured by Russian President Vladimir Putin in the Presidential elections raise warning signs in the Russia-Ukraine conflict, while Ukraine attacked Russian energy facilities over the weekend.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said he will proceed with plans to push into Gaza’s Rafah enclave, making chances for a peace agreement more difficult and adding to the geo-political risk premium. Now the major focus is on the FOMC meeting due tomorrow where the Federal Reserve is expected to hold the rates steady.
However, the attention will be on updated projections and Fed chair Jerome Powell’s guidance on rate cut timing. In the row, Ravindra Rao, Head Commodity Research, Kotak Securities said, “Comex Gold prices pared early losses and closed marginally higher on Monday amid heightened geo-political tensions and investors await a slew of central bank decisions this week.
Gains in dollar index and treasury yields limited the upside in the non-yielding yellow metal. The US benchmark 10 year yields have been rising for the past six days as hotter than expected US CPI in January and February prompted traders to dial back bets on the pace of monetary easing. Now the major focus is on the FOMC meeting due tomorrow where the Federal Reserve is expected to hold the rates steady.”
Comex Silver prices closed lower on Monday, tracking mixed sentiments in the industrial metals and marginal gains in gold prices. Chinese data released earlier today, Tuesday; showed that Chinese Retail sales, Industrial output and fixed asset investment topped estimates. Supply side stimulus and export demand is offering some relief even as domestic demand remains muted.
At the same time, upbeat data also raised doubts over whether policymakers will step up support still needed to boost demand.