Gold prices held steady on Tuesday as investors closely monitored developments ahead of this week's Federal Reserve policy meeting and key economic data releases. Spot gold was little changed at $2,385.13 per ounce at 0353 GMT, while US gold futures edged up 0.2 per cent to $2,382.10. While the Fed is widely expected to maintain interest rates at the conclusion of its two-day meeting on Wednesday, investors will be scrutinising the central bank's statement for hints of potential rate cuts as early as September. This anticipation is fuelled by recent data suggesting inflation is gradually cooling towards the Fed's two per cent target. In addition to the Fed meeting, market participants will be focused on a series of employment reports scheduled for release this week, culminating in the highly anticipated nonfarm payrolls data on Friday. "The tone of the Fed meet and Friday's jobs report could pull the rug out from underneath the US dollar if investors start to price in more rate cuts between now and year-end," said Tim Waterer, KCM Trade's chief market analyst. Lower dollar values could benefit gold prices, potentially pushing them above $2,400, as lower interest rates decrease the opportunity cost of holding the precious metal. Other central banks, including the Bank of England (BoE) and the Bank of Japan (BOJ), are also scheduled to announce monetary policy decisions this week. In other precious metals, spot silver declined 0.1 per cent to $27.84 per ounce. Platinum traded nearly flat at $947.64, while palladium dipped 0.2 per cent to $901.68. Analysts at Heraeus believe that if silver prices remain above $25 for the remainder of the year, Indian imports are unlikely to see a significant increase, except for occasional surges during price dips. This trend could lead to a decline in demand for Indian jewellery and silverware fabrication for the second consecutive year. Attribution: Reuters
