BENGALURU- Gold held steady on Tuesday as investors focused on the US Federal Reserve’s policy meeting to see if President Donald Trump’s policies have an impact on the central bank’s views.
Spot gold was nearly steady at $2,738.90 per ounce. Bullion prices fell more than 1 percent on Monday as a low-cost Chinese artificial intelligence model triggered a sell-off in the broader market.
US gold futures rose 0.2 percent to $2,743.10.
Fed policymakers are expected to leave interest rates unchanged on Wednesday, but Trump may complicate the job, after he said last week he wants the central bank to lower borrowing costs.
If the Fed keeps rates unchanged, this would be the first pause in the rate-cutting cycle that began last September.
“If (Fed Chair) Jerome Powell leaves the door slightly more ajar to a potential rate cut in coming months, this may pressure treasury yields and provide an assist to gold,” said Tim Waterer, chief market analyst at KCM Trade.
He said the $2,800 level shapes as being a viable near-term target for gold.