Gold trades in narrow range as markets wait for Fed minutes

Gold stuck to a narrow range on Wednesday as investors awaited the release of the U.S. Federal Reserve’s latest monetary policy meeting minutes later in the day, with a stronger dollar also weighing on prices.

Spot gold was little changed at $1,923.66 per ounce by 0243 GMT, while U.S. gold futures rose 0.1% to $1,931.20.

The dollar index ticked up 0.1%, making bullion less attractive for overseas buyers.

“Fed minutes are likely to reveal a lively debate where still more rate hikes are to come. This could cause some softness in gold in the very short term, but medium to long term seekers of security will be buying any dip,” said Clifford Bennett, chief economist at ACY Securities.

The Federal Open Market Committee will issue minutes from its June 13-14 meeting at 1800 GMT. Investors expect the central bank to resume its tightening campaign in July after it signalled the need to deliver at least two more quarter-point interest rate hikes before the end of the year.

High interest rates discourage investing in non-yielding gold, which is otherwise seen as a safe investment amid economic uncertainties.

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