Gold prices slip as Fed meeting gets underway

Investing.com — Gold prices slipped lower Tuesday as investors remained wary towards metal markets before a string of key central bank meetings this week, most notably the Federal Reserve. 

At 06:45 ET (11:45 GMT), spot gold fell 0.5% to $2,639.56 an ounce, while gold futures expiring in February slipped 0.6% to $2,653.81 an ounce. 

The yellow metal has fallen into something of a holding pattern between $2,600 and $2,700 as traders bought dollars before rate decisions from the Fed, the Bank of Japan and the Bank of England this week. 

Fed to headline barrage of rate decisions this week 

The Fed is widely expected to cut interest rates by 25 basis points at the conclusion of a two-day meeting on Wednesday – a scenario that appears to be largely priced in by markets. 

But the central bank’s outlook on rates will be closely watched, amid growing conviction that the Fed will signal a slower pace of rate cuts in the coming year, in the wake of recent data prints showing sticky inflation and labor market strength.

The prospect of relatively high US rates boosted the dollar in recent sessions, while dragging gold prices further off record highs. High rates pressure gold and other metals by increasing the opportunity cost of investing in the sector. 

Beyond the Fed, the BOJ and BOE are also set to decide on rates this week. The BOE is widely expected to hold rates unchanged, while analysts are split over whether the BOJ will hike rates again after a historic monetary policy pivot earlier this year. 

Other precious metals were muted. Platinum futures fell 0.9% to $933.20 an ounce, while silver futures fell 1% to $30.740 an ounce. 

Copper prices pressured by China woes 

Among industrial metals, copper prices fell on Tuesday, remaining under pressure from concerns over sluggish economic growth in top importer China. 

Benchmark copper futures on the London Metal Exchange fell 1% to $8,979.0 a ton, while February copper futures fell 1.2% to $4.1398 a pound.

The red metal retreated on Monday following middling economic readings from China, which showed that the economy was still struggling despite a slew of supportive measures from Beijing. 

While China’s copper demand has so far remained resilient, traders fear a potential slowdown due to worsening conditions in the country.

(Peter Nurse contributed to this article.)

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Forex Trading Regulations in 2025: Rules for Traders

    • May 3, 2025
    Forex Trading Regulations in 2025: Rules for Traders

    Why Temu Halted China Shipping?

    • May 3, 2025
    Why Temu Halted China Shipping?

    What Is the Bid-Ask Spread in Forex and Why Does It Matter?

    • May 3, 2025
    What Is the Bid-Ask Spread in Forex and Why Does It Matter?

    Equities Now Make Up 90% of Gildencrest Capital’s Revenue, but Profit Without FX Drops 95%

    • May 3, 2025
    Equities Now Make Up 90% of Gildencrest Capital’s Revenue, but Profit Without FX Drops 95%

    Weekly Recap: Google Lifts IG France’s Ad Restrictions, XM Owner Buys Stake in a Cyprus Bank

    • May 3, 2025
    Weekly Recap: Google Lifts IG France’s Ad Restrictions, XM Owner Buys Stake in a Cyprus Bank

    How to Calculate Forex Position Sizing & How Much to Risk?

    • May 2, 2025
    How to Calculate Forex Position Sizing & How Much to Risk?