Gold prices took a hit on Wednesday as Apple’s impressive quarterly results boosted investor confidence in equities, diverting attention away from safe havens like gold.
Investors holding onto long positions in gold were hopeful that the precious metal would reclaim the $1,300 mark before the Federal Reserve’s policy announcement later in the day, which was widely expected to keep U.S. interest rates unchanged. A weakening dollar ahead of the decision usually supports higher gold prices, but gold prices were still down.
Spot gold was down 0.1% at $1,281.96 per ounce, while gold futures for June delivery on the Comex division slipped 0.2% to $1,283.55 per ounce.
The Federal Reserve is anticipated to maintain the current benchmark interest rate of 2.25% to 2.50%, according to Investing.com’s Fed Rate Monitor Tool. Reports suggest that policymakers may choose to take a cautious approach to interest-rate changes amidst falling inflation, rather than giving in to President Donald Trump’s calls for a rate cut.
While gold longs were hopeful for a near-term bounce back to $1,300, Standard Chartered predicts that gold prices will consolidate lower and average $1,285 per ounce in the second quarter, with an increase to $1,325 per ounce in the fourth quarter.
Palladium prices also faced volatility, sliding after a previous rebound from a 7% drop earlier in the week. Spot palladium was down 2.5% at $1,353.65 per ounce.
In the broader commodities market, palladium and platinum futures were down, while silver and copper futures also saw declines.
Overall, the markets are treading cautiously ahead of the Fed’s decision, with gold prices closely watched for any signs of movement in response to the interest rate outlook.
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