COMEX Gold was down 0.41% at $4,492.80 per ounce in early trade on May 20. COMEX Silver declined 0.82% to $74.545 per ounce.
Market sentiment remained influenced by geopolitical developments after US President Donald Trump said the United States may need to strike Iran again, though he added he had postponed military action earlier. US Vice President JD Vance said both countries had made progress in talks and neither side wanted renewed military conflict.
Investors also tracked signals from the US Federal Reserve. Philadelphia Federal Reserve Bank President Anna Paulson said current interest rates remain appropriate to contain inflation, though investors have started considering scenarios where rates may need to rise further. A Reuters poll showed most economists now expect the Fed to avoid rate cuts this year amid persistent inflation concerns.
Market participants are awaiting minutes from the Fed’s April policy meeting later in the day for further cues on the interest rate outlook.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions, said that West Asia tensions, firm oil prices and persistent inflation continued to keep pressure on bullion prices, while the Fed minutes and flash PMI data would be key triggers for the next directional move.
–With Reuters inputs
