Global gold prices fell during these moments of trading, Monday, as hopes for an early interest rate cut this year faded, while focus shifted to the US Federal Reserve meeting and US non-farm payrolls data scheduled to be released this week for more clarity on monetary policy.

“In the short term, gold faces some challenges given the likely delayed timeline for interest rate cuts,” said Tim Waterer, chief market analyst at KCM Trade. “However, if gold remains in the $2,200-$2,350 range, the precious metal will be well positioned to benefit from any potential pullback in US macro data in the coming quarters.”

The Federal Reserve’s April 30-May 1 policy meeting and Friday’s nonfarm payrolls data are key for markets this week. The Fed is expected to keep its benchmark interest rate steady at 5.25% to 5.5% at that meeting.

“If we hear hawkish comments from (Fed Chair) Jerome Powell this week, coupled with further strong jobs data, gold could face a test of some key support levels on the downside,” Waterer added.

The U.S. Commerce Department said Friday that the personal consumption expenditures price index, which includes food and energy, rose 2.7% year-over-year in March, above estimates of 2.6%, after rising 2.5% in February.

Meanwhile, data from the University of Michigan revealed that American consumers’ expectations for inflation over the next year rose from 2.9% in March to 3.2% in April, while long-term inflation expectations increased from 2.8% last month to 3% this month.

Investors are currently pricing in one rate cut this year and expecting it to come in November, following a slew of strong U.S. inflation data and hawkish rhetoric from Federal Reserve officials including Chairman Jerome Powell. Higher rates make holding non-yielding gold less attractive.

Gold at settlement on Friday

Gold futures pared gains on Friday as markets digested U.S. economic data that raised concerns that monetary policy tightening could last longer than previously expected.

At settlement, gold futures for June delivery rose 0.2%, or $4.7, to $2,347.2 an ounce, after touching $2,364.40, but recorded losses during the week by 2.75%, ending a series of gains that extended over four consecutive weeks.

Gold and dollar now

Gold futures are now down 0.05% at $2,346 an ounce.

While spot gold contracts fell by about 0.15% to $2,335 per ounce.

On the other hand, the dollar index fell by 0.32% to 105.465 points.

Other minerals

Spot silver rose 0.3% to $27.24 an ounce, platinum rose 0.5% to $919.95 and palladium gained 0.1% to $954.94.