Gold’s price experienced a modest decline after two consecutive days of gains, holding steady within familiar ranges as traders prepared for the upcoming monetary policy decision from the US Federal Reserve (Fed) scheduled for May 1st. Recent economic data from the United States (US) revealed that Gross Domestic Product (GDP) fell short of expectations, while the Core Personal Consumption Expenditure Price Index (PCE), a key inflation indicator for the Fed, remained stagnant at 2.8% year-over-year for the second consecutive month.
The XAU/USD pair retreated below the daily open, trading around $2,334 and registering a marginal decline of 0.11%. Factors contributing to this movement include an improvement in risk appetite, lower US Treasury yields, and a relatively weaker US Dollar (USD).
Expectations for the Fed’s monetary policy decision lean towards maintaining interest rates unchanged, supported by Fed Chairman Jerome Powell’s recent remarks indicating satisfaction with the current policy stance given the ongoing challenges in taming inflation. Additionally, investors are eagerly anticipating the release of US Nonfarm Payrolls data scheduled for Friday, which could further influence market sentiment and gold’s price trajectory.
