Gold prices remain steady as investors focus on Fed’s policy meeting
Date
1/28/2025 2:06:59 AM
(MENAFN) Gold prices remained steady on Tuesday as investors turned their attention to the Federal Reserve's policy meeting to assess whether President Donald Trump's policies have influenced its outlook.
Spot gold was unchanged at USD2,738.90 an ounce as of 0230 GMT. The yellow metal saw a decline of over 1 percent on Monday after a low-cost artificial intelligence model from China triggered a broader market selloff. Meanwhile, U.S. gold futures edged up by 0.2 percent to USD2,743.10.
The Federal Reserve is widely expected to keep interest rates unchanged on Wednesday. However, recent comments from Trump, who last week called for lower borrowing costs, could complicate the central bank's decision-making process. If the Fed holds rates steady, it would mark the first pause in the rate-cutting cycle that began in September of last year.
According to Tim Waterer, chief market analyst at KCM Trade, if Federal Reserve Chair Jerome Powell signals the possibility of a rate cut in the coming months, it could pressure Treasury yields and support gold prices. Waterer also noted that gold could reach USD2,800 in the near term. As a non-yielding asset, gold remains a favored investment during periods of low interest rates.
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