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Gold prices stabilized on Tuesday, as traders 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 0528 GMT.
US gold futures fell 0.1 percent to $1,991.
There are high expectations that the 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 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 Thursday’s meeting.
As for other precious metals, silver fell in spot transactions by 0.4 percent, to $ 24.87 an ounce.
Platinum fell 0.1% to $1,048.34, while palladium rose 1% to $1,466.36.
