After three consecutive months of gains, gold prices fell today to about $2,320 an ounce. Nonetheless, the yellow metal is still up by around 4% over the month. Spot gold dropped by 0.7% to $2,320.55 an ounce by 2:30 p.m. in the Singapore market. Moreover, the Bloomberg Dollar Spot Index went up 0.3% after falling 0.4% on Monday. Other precious metals, such as Silver, palladium, and platinum also witnessed price dips.

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The price dip comes just ahead of the FOMC’s (Federal Open Market Committee) meeting on Wednesday. Officials anticipate hotter-than-expected inflation data, fuelling speculations of a hawkish stance from the Federal Reserve. While many traders expected an interest cut in March, Fed Chair Jerome Powell hinted at rate cuts being pushed till at least December of this year.

Will gold prices recover?

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Despite interest rate cuts being pushed back by the Federal Reserve, gold has seen more than 12% gains this year. There has been significant demand for the yellow metal in the Asian markets, especially from China.

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Furthermore, according to the World Gold Council, demand for bullion from central banks saw the best start to any year on record in Q1 2024.

Bullion has also gained support from a weaker US dollar. USD fell on Monday amid the Japanese yen surging after the Japanese government intervened to support its currency for the first time in nearly two years.

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Therefore, we may see a quick turnaround for gold over the next few days. The yellow metal is also the original hedge against rising inflation. With US inflation figures still above the Federal Reserve’s 2% target, investors may turn their attention to the yellow metal.


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