Navigating Emerging Market Currencies: Seizing Opportunities Amid Challenges
Emerging market currencies often represent untapped potential for savvy forex traders, offering both...
Gold prices fell during Monday's trading session, as the dollar stabilized and investors awaited anticipated monetary policy decisions from global central banks, including the upcoming meeting of the US Federal Reserve.
In this context, Kyle Roda, financial markets analyst at Capital.com, said: "Cautious sentiment from the US Federal Reserve has recently escalated... as optimism suggests the possibility of only one or two interest rate cuts during this year."
On the other hand, the Federal Reserve is expected to keep interest rates unchanged at its two-day meeting, which ends on Wednesday, but there is a possibility of hints about continuing to raise interest rates for a longer period due to ongoing inflation rates.
This situation reflects a 56% probability of a rate cut in June, which reduces the attractiveness of investing in gold, which does not yield returns in the face of rising interest costs.
Regarding future expectations, Roda said: "If there is less easing than expected from the Federal Reserve, this could be negative for the dollar, and could lead to a decline in bond yields, which could provide some fundamental support for gold as it rises to $2,200 levels."
Last weekend, gold prices fell by 0.3% to $2,161.5 per ounce in Friday's trading settlement, leading to weekly losses of 1.1%.
As for current prices, gold futures fell by 0.4% to $2,153 per ounce, while spot contracts fell by 0.28% to $2,150 per ounce.
On the other hand, the dollar index stabilized near its highest level in two weeks against a basket of major currencies, increasing the cost of gold for holders of other currencies.
As for other metals, platinum fell slightly in spot trading to $932.45 per ounce, while palladium remained steady at $1,077.25, and silver fell by 0.6% to $25.01 per ounce.
