World gold prices fluctuated little as investors waited for the US Federal Reserve's (FED) policy meeting on March 20 (US time). The meeting is expected to provide more clues about the timing of interest rate cuts this year.
Currently, the market is almost certain that the FED will keep interest rates unchanged at this meeting. What investors are waiting for are updated economic forecasts and interest rates from policymakers.
Chief market analyst Tim Waterer of KCM Trade commented that if the FED focuses on the recently announced US consumer price index (CPI) and producer price index (PPI) and the strength of the market, labor, hopes of loosening monetary policy will be extinguished. In that case, gold could lose that support and fall even deeper.
Currently, according to the CME FedWatch tool, traders are currently pricing in about a 51% chance that the Fed will cut interest rates in June, down from 56% on March 18.
In addition to the FED, policy meetings of central banks in Japan, England, Australia, Norway, Switzerland, Mexico, Brazil and Indonesia also attracted investors' attention.