After heavy declines in gold trading last week, testing the 3,200 level and losing for three consecutive sessions, the yellow metal has recovered all of its losses since the beginning of trading yesterday, Monday, to trade at its highest level in two weeks, with a clear decline in risk appetite in the markets amid anticipation of the US Federal Reserve meeting. The yellow metal is trading in the middle of the European session today, Tuesday, May 6, rising for the second consecutive session at $3,376 per ounce, with gains of 1.30%, while silver is trading at $32.92 per ounce, with gains of 1.28%.
The yellow metal ignored the US Institute of Supply figures, which showed growth in the services sector index in April at 51.6, exceeding expectations, in addition to the positive statements by US Treasury Secretary Besant that 17 countries have contacted the US administration with the aim of reaching a trade agreement and very good proposals to avoid increasing tariffs on their exports. On the other hand, negative news from Trump that there is no imminent agreement with China, along with Trump’s holiday announcement that he will impose 100% tariffs on foreign-produced films and his announcement of his intention to impose tariffs on pharmaceuticals in the next two weeks, contributed to a shift in risk appetite in the markets and lifted safe-haven currencies and assets.
Metal markets are awaiting the US Federal Reserve meeting, which begins today and will announce the results of its meeting at the end of the US session tomorrow, Wednesday. The bank is expected to keep interest rates unchanged at 4.5% for the third consecutive meeting this year, after cutting them by a quarter of a basis point in December.
Platinum, meanwhile, is trading at $974, up about 1.59%, while palladium is up about 1.02%, trading at $950.