Gold Price In US: Yellow Metal Rates Slip Amidst Hopes For Interest Rate Cuts; Eyes On Fed Meeting

Gold prices experienced a downturn on Monday, influenced by prospects of delayed interest rate cuts this year. As the market awaited the Federal Reserve's policy meeting and US non-farm payroll data, investors shifted their focus to seeking clarity on monetary policy.

Spot gold saw a decline of 0.5% to $2,327.09 per ounce, while US gold futures also dropped by 0.4% to $2,338.30.

In the United States, April 29 witnessed a significant downturn in gold prices from the preceding session. Both 22-carat and 24-carat gold recorded sharp declines, each dropping by $40. The price for 10 grams of 22-carat gold fell to $715, and for 24-carat gold, it stood at $755. Similarly, broader measurements such as 100 grams of both 22-carat and 24-carat gold slumped by $400 each, reaching $7,150 and $7,550, respectively. Prices for 10 grams of 18-carat gold and 100 grams of the same category also witnessed a plunge, settling at $585 and $5,850, respectively, marking a fall of $33 and $330 each.

This week holds significance for the market with the Federal Reserve's policy meeting scheduled from April 30 to May 1 and the release of US non-farm payroll data on Friday. Investors await these events for insights into the future direction of monetary policy. The Fed is anticipated to maintain its benchmark interest rate within the range of 5.25% to 5.5% during this meeting.

The expectations regarding interest rate cuts have been influenced by recent developments. Investors currently project a single rate cut this year, with November being the likely timeframe, according to the CME's FedWatch tool. This projection follows a series of sticky US inflation data and hawkish remarks from Fed officials, including Chair Jerome Powell. The prospect of higher interest rates diminishes the appeal of holding non-yielding assets like gold.

In contrast to gold, spot silver experienced a slight rise of 0.3% to $27.24 per ounce. Spot platinum also showed a modest increase of 0.5% to $919.95, while palladium gained 0.1% to $954.94 per ounce.

As the market braces for the upcoming Fed meeting and employment data release, investors remain cautious amid uncertainties surrounding monetary policy. The outcome of these events could provide valuable insights into the future trajectory of gold prices and broader market sentiments.