Gold prices remain stable above USD 2,000

Gold Prices remained just above the key USD 2,000 per ounce level on Wednesday as investors turned their attention to the Federal Reserve's interest rate decision. Spot gold traded in a narrow range of USD 5.48 and remained at USD 2,017.09 per ounce after rising more than 1% in the previous session, while yields fell on renewed fears of a sprawl in the US banking sector.

Most investors expect the Fed to raise rates by another 25 basis points, but are looking for clues about its next moves. "If the Fed were to surprise with a pause, it would point to a deepening banking crisis and likely drive gold prices higher," said Clifford Bennett, chief economist at ACY Securities.

Gold is seen as a hedge against inflation and economic turmoil, but higher interest rates tend to diminish the appeal of zero-yielding assets. On Tuesday, it was announced that U.S. job openings fell in March and layoffs rose to their highest level in more than two years, indicating a slight slowdown in the labor market.

If uncertainties about the banking crisis and concerns about a possible U.S. debt default continue, the dollar will lose its luster and more light will fall on gold, Bennett said.

On the physical side, April sales of Perth Mint gold products fell more than 6% from the previous month, while silver sales hit a six-month high. Spot Silver Prices fell 0.5% to $25.27 per ounce. Platinum fell 0.1% to $1,064.94, while palladium rose 0.6% to $1,438.25.

Analysts cut their forecasts for palladium after prices fell 60%, but rising vehicle production should limit a sell-off, a Reuters poll showed. However, the market remains to see how the economic situation will develop further, especially after the Fed's decision regarding the interest rate hike.