Gold fell to near $2,320 per ounce on Monday, as a stable US dollar rendered the bullion less appealing to overseas buyers, while investors remained in anticipation of the Fed’s monetary policy meeting this week after the US PCE data came in line with expectations. In March, both the monthly key rate and core rate rose by 0.3%, meeting market projections. However, annual headline inflation accelerated to 2.7%, while the annual core rate remained at 2.8%, contrary to forecasts of a slowdown to 2.6%. The recent economic data indicates that inflationary pressures are staying firm, with most investors still betting on the first interest rate cut in September. Higher interest rates dent the appeal of non-yielding gold. The Fed is widely expected to maintain the current policy rate range of 5.25%–5.5% on Wednesday, signaling no immediate need for cuts.
