Gold holds above $2,020 ahead eof key central bank meetings

Gold prices remain range-bound at $2021.48, trading at the time of writing. Markets are cautious ahead of a busy week of policy meetings with central banks, including the Bank of Japan.

The US Dollar Index moves in a tight range around 103.32. The Fed Funds Futures market sees no change in rate-setting from the Federal Open Market Committee meeting on January 30-31. However, investors are reducing the outlook for easing to a five-quarter percentage point decrease from six previously.

The odds for a rate cut at the March meeting fell to 42%, a steep slide from 70% just a week ago. Federal Reserve officials, including Governor Christopher Waller, John Williams, and Raphael Bostic, indicated they are in no hurry to cut the rate, even if the hikes are probably done.

The highlight of this week will be the US Gross Domestic Product (GDP) for Q4 on Thursday and the Core Personal Consumption Expenditures Price Index (Coe PCE) on Friday.