Gold price failed to maintain last week’s gains as investors behave apprehensively ahead of the Federal Reserve’s meeting on Wednesday.
The bullion edged down by 0.02% or a net change of $0.40 in the New York Comex for the August 2021 contract. It currently hovers back and forth to the $1,865.00 per ounce threshold.
Meanwhile, it also failed to dodge the bullet in Asia and in Europe. The two continents also showed red dominance in their respective metal charts.
In Tokyo, the April 2022 contract fell by 0.24%, while its European spot contract showed a 0.23% dent to 1,536.33 in local currency.
The precious metal settled at a four-week low, despite 10-year Treasury yields declined by 1.50%.
This shows that the market still could not decide on which extreme to gravitate into, whether safe havens or an inflation accommodative asset.
The Federal Reserve is scheduled to convene its two-day policy meeting on Wednesday. Analysts noted that the central bank would maintain its dovish monetary stance as usual.
However, spectators believe otherwise after the consumer price index hiked on a multi-year high during the latest deliberation last week.
A hike in core CPI hints at the possibility of inflation, but this was quickly dismissed by policymakers.
US Treasury Secretary Janet Yellen asserted over and over that the ballooning in prices is merely transitory.
This assurance became supportive of gold and other important metals over the past weeks, helping them sustain their highs.
The latter managed to move past a tough resistance to crack of $1,900.00 per ounce during the same period.
On the other hand, this is still far from reaching its multi-year high of $2,050.00 per ounce notched in August.
Silver Price at a Sustained Momentum
Unexpectedly, the silver price managed to consolidate a positive momentum while its counterpart followed an upward trajectory.
The industrial favorite currently exchanges hands at $27.76 per ounce in the New York Comex.
This price settlement separates it far from the $25.00 per ounce support level in which it managed to deviate from last week.
In Japan, silver’s April 2022 contract remained largely unchanged while it exchanged hands near GBP20 per ounce in the UK.
In a projection, commodity experts noted that the metal could notch $28.35 an ounce later in the week. This will come should it maintains the uptrend after the US central bank’s policy meeting.
The Federal Reserve will give a clear direction on how metal prices will turn out during the week.