Key Points
(Reuters) Gold prices firmed after dipping to one-week lows on Monday as investors awaited a series of central bank meetings this week, including the U.S. Federal Reserves policy decision on Wednesday, to pick up on clues on inflation and interest rates...
Gold is in anticipation of the interest rate decision on Wednesday, but also maybe the Bank of Japans interest rate decision tonight it can show that globally inflation is rising and obviously gold is a global inflation hedge, said Daniel Pavilonis, senior market strategist at RJO Futures...
Bullion fell about 1% last week after data showed that U.S. consumer prices increased solidly in February and producer prices rose more than expected, indicating some stickiness in inflation...
Although gold is traditionally considered an inflation hedge, higher interest rates to rein in the elevated prices discourage investment in bullion since it pays no interest...
Markets also widely anticipate no change in interest rates at the end of Feds two-day policy meeting on Wednesday, but are pricing in a 55% chance of a rate cut in June...
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