Gold prices were little-changed on Thursday on renewed talks of interest rate hikes this year by the U.S. Federal Reserve, keeping the bullion pinned near a three-month low hit in the previous session.
Spot gold was flat at $1,932.35 per ounce by 0242 GMT. U.S. gold futures ticked down 0.1% to $1,942.70.
Fed’s Powell in his remarks to lawmakers on Capitol Hill said further rate increases are “a pretty good guess” of where the U.S. central bank is heading if the economy continues in its current direction.
While higher interest rates dull the appeal for zero-yield bullion, Edward Meir, a metals analyst at Marex said “the market still believes the central bank is “very close to finishing their rate hikes,” and that’s why gold hasn’t really done all that much. It’s a little bit on the defensive, but hasn’t collapsed,” said .
Gold could trade between $1,900 to $1,980 until the next Fed decision, Meir added.
Markets are pricing in a 72% chance of a 25 basis point hike next month, according to CME FedWatch tool.