As investors sought clarification on whether the U.S. Federal Reserve would stop following a widely anticipated interest rate hike in May, gold prices were little moved on Tuesday.
Spot gold was unchanged at $1,994.85 per ounce. The price of U.S. gold futures stayed the same at $2,006.50.
On Monday, gold prices dropped to their lowest level in almost two weeks as expectations for a 25-basis-point rate hike by the Fed at its May meeting increased along with the currency and U.S. Treasury yields. The data showed that manufacturing activity in New York State had increased for the first time in five months.
According to the CME FedWatch tool, the probability of a 25 basis-point raise in May is now being priced in at 91%.
The confidence of American single-family homebuilders increased for a fourth consecutive month in April, according to additional data released on Monday.
Investors will closely monitor statements made by Fed officials this week as they prepare to go into a blackout period starting on April 22 ahead of the Fed's meeting on May 2-3.
Although non-yielding bullion's appeal is diminished by increased interest rates, gold is nevertheless regarded as a hedge against inflation and economic uncertainty.
The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.22% to 925.70 tonnes on Monday from 927.72 tonnes on Friday.
Spot silver fell by 0.4% to $25.01 per ounce while palladium increased by 0.1% to $1,561.36 and platinum climbed by 0.1% to $1,049.13.As investors sought clarification on whether the U.S. Federal Reserve would stop following a widely anticipated interest rate hike in May, gold prices were little moved on Tuesday.
Spot gold was unchanged at $1,994.85 per ounce. The price of U.S. gold futures stayed the same at $2,006.50.
On Monday, gold prices dropped to their lowest level in almost two weeks as expectations for a 25-basis-point rate hike by the Fed at its May meeting increased along with the currency and U.S. Treasury yields. The data showed that manufacturing activity in New York State had increased for the first time in five months.
According to the CME FedWatch tool, the probability of a 25 basis-point raise in May is now being priced in at 91%.
The confidence of American single-family homebuilders increased for a fourth consecutive month in April, according to additional data released on Monday.
Investors will closely monitor statements made by Fed officials this week as they prepare to go into a blackout period starting on April 22 ahead of the Fed's meeting on May 2-3.
Although non-yielding bullion's appeal is diminished by increased interest rates, gold is nevertheless regarded as a hedge against inflation and economic uncertainty.
The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.22% to 925.70 tonnes on Monday from 927.72 tonnes on Friday.
Spot silver fell by 0.4% to $25.01 per ounce while palladium increased by 0.1% to $1,561.36 and platinum climbed by 0.1% to $1,049.13.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.