Gold prices in Asia experienced a slight decline on Tuesday but managed to hold above important support levels as investors remained cautious ahead of a crucial Federal Reserve meeting. Despite recovering some lost ground and reestablishing the $2,150 an ounce level, uncertainty surrounding the Fed’s stance kept gold prices below the record highs seen earlier in March. The current price stood at $2,158.26 an ounce for gold futures expiring in April at $2,161.35 an ounce.
The strength of the US dollar prior to the Fed meeting added pressure on gold prices, with traders favoring the greenback amidst dovish signals from the Bank of Japan. The Fed meeting, scheduled to conclude on Wednesday, is expected to maintain interest rates, but any hints of a potential rate hike could negatively impact gold and other precious metals. Silver prices dropped 0.7% to $913.15 an ounce, while platinum fell 0.3% to $25.192 an ounce.
Copper prices, although slightly lower, remained close to recent peaks after a significant rally driven by expectations of a deficit in Chinese refined copper supplies. Both copper and aluminum prices were affected by positive data from China, the world’s largest copper importer. Despite the minor decline, copper prices on the London Metal Exchange stood at $9,046.0 a ton and aluminum at $4.1052 a pound, still within reach of the 11-month highs reached on Monday.
