Price of gold shifted due to expectations of an inevitable interests rate hike. This kept them close to five-week declines last week. Losses were narrowed down by elections in Europe feeding investors buying and creating concerns.
Investors are keeping an eye on Dutch Parliamentary elections on Wednesday. The probability of Eurosceptic party being effective in the Netherlands is quite small; however a strong performance from the election could revive concerns regarding the popularity of the incoming French presidential elections in April and May.
U.S. gold futures added $1.70 at $1,203.10 for the month of April while Spot gold dropped 0.03 percent at $1,204.11 an ounce.
Wednesday marks the second day of U.S. Federal Reserve’s two-day conference. This agreement to lift interest’s rates will strengthen the U.S. greenback by making commodities that are priced by dollar more expensive for firms excluded in the United States.
The remark from the Federal Reserve is scheduled to be released at 2 p.m. and a conference at 2:30 p.m. will be checked out for any changes among lawmakers.
According to Daniel Smith, analysts in Oxford economics, an interests rate hike from the Federal Reserve is priced in and people are subjected to witness two more hike this 2017. He added that the rising rates will definitely put pressure on the price of gold.
Investors claimed that gold should end above $1,209 to create further progress on the upside. However the downside support lingered at the psychological level of $1,200 per ounce.
The world’s biggest gold-backed exchange-traded fund SPDR Gold Trust declined 1.06 percent to 825.22 tons on Friday.
In other precious metals, Platinum fell 0.21 percent to $940 per ounce, Palladium gained 0.99 percent to $751.10 per ounce and silver declined 0.26 percent to $16.98 per ounce.