Gold futures kicked off the week marginally weaker as traders looked ahead to this week’s meeting of Federal Reserve policy makers.
Gold for June delivery
The Federal Reserve will conclude a two-day policy meeting on Wednesday. No change in policy is expected and Fed Chairman Jerome Powell is expected to continue insisting that interest rates are unlikely to rise before 2022 despite improving economic data and rising inflation fears.
“If Fed Chair Powell were to play down the latest rise in inflation again at the subsequent press conference, gold could profit because this would confirm the impression that the Fed is prepared to accept an overheating of the economy and that it risks falling behind the curve,” said Carsten Fritsch, analyst at Commerzbank, in a note.