Gold in tight range with focus on Fed’s rate-hike moves
Gold prices edged up in range-bound trading on Wednesday due to a softer dollar, while investors assessed the U.S. Federal Reserve’s rate-hike trajectory after a closely-watched consumer prices report showed still-high inflation.
Spot gold was up 0.1% at $1,903.64 per ounce as of 0316 GMT, trading in a $6 range. Prices had briefly slipped below the key $1,900 level earlier in the session.
U.S. gold futures eased 0.1% to $1,908.60.
“Some degree of relative calm on U.S. banks and an overnight rise in Treasury yields may temporarily reduce demand for safe haven proxies” such as gold, said OCBC FX strategist Christopher Wong.
The dollar index was down 0.1%, making bullion less expensive for overseas buyers, while U.S. Treasury yields ticked higher.
“As focus shifts to the Federal Open Market Committee meeting next week, the question remains what guidance and how dots plot will evolve taking into consideration the recent development with some U.S. banks versus combating inflation,” Wong said.
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