Gold rangebound as traders hunker down for Fed cues

Gold traded in a narrow range on Wednesday as traders refrained from making big bets while positioning for fresh economic data and the U.S. Federal Reserve’s interest rate strategy next week.

Spot gold fell 0.1% to $1,961.73 per ounce by 0923 GMT, holding in a $13 range. U.S. gold futures were down 0.2% to $1,977.70.

“Gold is moving in a small range, making it seem like the volatility disappeared. But this compression of the volatility is mostly related to the market being in a wait-and-see mood as the wait for the Fed’s rate hike path and for new market drivers,” said Carlo Alberto De Casa, external analyst at Kinesis Money.

Bullion was finding support at the $1,940 level and resistance around $1,980, De Casa said.

The U.S. inflation report for May, due on June 13, ahead of the Fed meeting, will provide investors more clarity about the health of the world’s largest economy.

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