Gold Holds Steady as Traders Brace for Central Bank Outcomes Amid Inflation Concerns

Spot gold remained unchanged at $4,707.16 per ounce at 1100 GMT on Monday, reflecting traders' caution ahead of a series of central bank gatherings. U.S. gold futures for June delivery slipped 0.4% to $4,722.60, as market participants brace for a potentially more hawkish stance due to higher oil prices.

Analyst Fawad Razaqzada of City Index and FOREX.com noted that the surge in oil, now above $105 a barrel, has amplified inflationary pressure, prompting expectations of tighter monetary policy. Consequently, investors are likely to adopt a defensive posture in the gold market until the upcoming policy decisions are disclosed.

The Federal Reserve is widely projected to keep rates unchanged in its statement on Wednesday, concluding a two‑day meeting from April 28 to 29. Attention will also turn to the Bank of Japan, the European Central Bank and the Bank of England, as they assess the war's impact on growth and rate trajectories. Meanwhile, a softer dollar has made gold slightly more affordable for holders of foreign currencies. Silver edged up 0.2% to $75.82 an ounce, platinum rose 0.5% to $2,020.44, and palladium fell 0.6% to $1,486.99.