Gold prices stabilized on Tuesday, May 2, as dealers cautiously await new signals from major central banks regarding their monetary policy plans, especially the US Federal Reserve.
There was little change in gold in spot transactions, to record $1983.29 an ounce by 05:28 GMT.
US gold futures fell 0.1% to $1,991.
There are high expectations that the US Federal Reserve, which meets on May 2nd and 3rd, will raise interest rates by 25 basis points.
Ajay Kedia, a board member of Kedia Commodities in Mumbai, said gold prices could move towards the $2,000 level if the US Federal Reserve highlights recession fears and hints at a temporary halt to the rate hike cycle.
The European Central Bank is also likely to raise interest rates for the seventh time in a row at its meeting on Thursday.
As for other precious metals, silver fell in spot transactions by 0.4%, to $24.87 an ounce.
Platinum fell 0.1% to $1,048.34, while palladium rose 1% to $1,466.36.
