PT Solid Gold Berjangka | Gold Steadies Ahead of Fed’s Forecasts That May Give Rate Clues
GOLD EMAS PT SGB SOLID GOLD BERJANGKA SOLID GROUP SG BERJANGKA
Solid Gold Berjangka | The Federal Reserve’s upcoming rate meeting. Here’s a summary of the key points:
- Gold’s Stability: Gold prices were steady ahead of the Federal Reserve rate meeting, which is expected to give insight into when policymakers might start reducing borrowing costs.
- Federal Reserve Meeting: The Federal Reserve’s quarterly forecasts, particularly the dot plot, will be released during the meeting on Wednesday. In December, officials had indicated they were looking at three quarter-point rate cuts in 2024. However, recent higher-than-expected inflation data caused traders to reconsider their expectations for the timing and extent of rate cuts this year.
- Impact of Rates on Gold: Generally, higher interest rates are seen as negative for gold, as it is a non-yielding asset. This relationship influences the price of gold in the market.
- Recent Gold Performance: Despite the potential for rate hikes, gold has been holding near record highs since mid-February, showing resilience in the face of changing expectations. Earlier in the month, Fed Chairman Jerome Powell hinted that the central bank was nearing the confidence to cut rates.
- Current Prices: At the time of the report, spot gold was holding at $2,155.41 per ounce in Singapore, remaining relatively stable after a 1.1% dip the previous week. The Bloomberg Dollar Spot Index was flat. Silver and platinum prices were slightly lower, while palladium prices saw gains.
This information is sourced from Bloomberg, providing a snapshot of the factors influencing the current gold market ahead of the Federal Reserve meeting.