Gold drifts upwards as markets position for the Fed meet
Istanbul, July 30 (Hibya) - Gold prices edged higher on Tuesday as investors awaited the Federal Reserve’s commentary on its monetary policy and a deluge of U.S. economic data due later in the week for more clues on the pace and scale of the Fed’s interest rate cuts.
Spot gold was up 0.2 percent at $2,387.89 per ounce as U.S. gold futures rose 0.3 percent at $2,384.80.
The Fed is anticipated to maintain current interest rates after its two-day meeting on Wednesday but may signal potential policy easing as soon as September, citing inflation nearing its 2 percent target.
Investors will be keenly attuned to any clues from Fed Chair Jerome Powell during his press conference later on Wednesday regarding the timing of potential rate cuts by policymakers.
India’s gold demand in the June quarter fell 5 percent from a year earlier. Still, the World Gold Council (WGC) said consumption in the second half of 2024 should improve due to a correction in local prices following a steep reduction in import taxes.
“However, record-high international prices have impacted consumer demand, with global bar and coin demand falling 5 percent year-on-year and jewellery tumbling down 19 percent,” a WGC note said.