Gold prices saw a slight dip on Tuesday as investors eagerly awaited key economic data and awaited the Federal Reserve’s policy announcement later in the week. Spot gold was down 0.2% at $2,306.38 per ounce, while US gold futures fell 0.2% to $2,323.00.
This drop came after gold experienced its biggest decline since November 2020, falling 3.5% or about $83, following a stronger-than-expected payrolls report on Friday and reports that China’s central bank was delaying gold purchases.
Investors are now turning their attention to the May consumer price index (CPI) inflation report due on Wednesday, which will provide further insight into the state of the economy and could impact the Federal Reserve’s decision-making process. Fed policymakers will update their economic and interest rate projections at the conclusion of their meeting on Wednesday.
While lower interest rates typically benefit gold prices by reducing the opportunity cost of holding the precious metal, China is expected to resume its gold buying spree once prices stabilize from their recent highs in May. Additionally, Vietnam is set to allow companies to import gold for the first time in over a decade to address the growing disparity between local and international gold prices.
In the broader market, spot silver fell 0.7% to $29.56 per ounce, platinum was down 0.1% at $966.85, and palladium lost 0.1% to $903.25. Investors are closely watching these movements as they wait for further economic indicators to guide their investment decisions.
