Gold prices were heading towards achieving a second consecutive monthly gain, Friday, as persistent economic concerns and the weakness of the dollar prompted investors to turn to safe-haven assets, with markets now focusing on the Federal Reserve meeting (the US central bank) scheduled for next month.
Gold settled in spot transactions at $ 1,989.50 an ounce, and is heading for a monthly gain of 1.1 percent, reports Al-Rai daily.
However, Clifford Bennett, chief economist at ACY Securities, said that at the next Federal Reserve meeting, gold buyers will likely remain cautious, as the battle to stay above $2,000 continues.
The Federal Open Market Committee meets on May 2nd and 3rd, and markets expect a rate hike of 25 basis points.
While gold is considered a hedge against economic uncertainty, higher interest rates tend to reduce the attractiveness of the non-yielding yellow metal, the US economic growth slowed more than expected in the first quarter of the year.