Traders are currently waiting to see what the U.S. Federal Reserve will decide about its policies. They are also looking at important job data coming out this week. Because of these factors, gold prices are not changing much. However, Ajay Kedia, who is the director at Kedia Commodities in Mumbai, thinks that gold prices might go up a little on Tuesday. He believes this because there are tensions in the Middle East.
Many people in the market think that the Fed will not change interest rates during their meeting, which lasts for two days and starts today. But, everyone is eager to hear what Powell, the Fed’s leader, will say on Wednesday.
Traders are making bets on the future of interest rates in the United States for 2024. They think there might be five small decreases in the rates. The first decrease might happen in March, but it’s not certain yet. This information comes from the IRPR app by LSEG, which shows the chances of interest rate changes.
A survey by Reuters, which was done on Monday, shows that people are not sure about the economy and the changes in U.S. interest rates. This uncertainty might lead to the highest gold prices ever seen in 2024.