Mumbai, 31 Jan (Commoditiescontrol): Gold prices were on track for their first monthly decline in four as investors toned down their estimate of rapid and deeper rate cuts in the U.S. on the face of a resilient economy, and awaited remarks from the Federal Reserve due later in the day.
Spot gold was flat at $2,035.09 per ounce on Wednesday, after touching a two-week high of $2048.12 in the previous session. Spot prices have dropped 1.3% so far this month. U.S. gold futures rose 0.2% to $2,034.60.
Traders priced in about 130 basis points (bps) of Fed rate cuts for this year, down from bets of more than 160 bps at the end of 2023, according to LSEG's interest rate probability app IRPR.
Money market pricing shows that the chances of a March rate cut have dropped to 43%, from about 90% a month ago.
The dollar index was on track to mark its best month since September, with an over 2% gain so far in January.
Yields on benchmark U.S. Treasury notes were at a two-week low of 4.0261%, but still higher than the year-end close of 3.8600%.
Market focus will shift to Fed's statement at the end of its two-day policy meeting at 1900 GMT, where it is expected to leave rates unchanged, which is followed by a news conference by Chair Jerome Powell at 1930 GMT.
Data on Tuesday showed that U.S. job openings unexpectedly rose in December while U.S. consumer confidence increased to a two-year high in January.
Spot silver fell 0.2% lower to $23.12 per ounce, platinum was steady at $920.57, and palladium edged 0.1% lower to $975.49. All three were also poised for a monthly decline.
(By Commoditiescontrol Bureau: 09820130172)
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