GOLD prices were stuck in a tight range on Wednesday (Mar 20) as investors refrained from making big bets ahead of the US Federal Reserve’s policy decision and remarks from Fed chair Jerome Powell later in the day.
Spot gold was up 0.1 per cent at US$2,159.50 per ounce, as at 0123 GMT. US gold futures also edged 0.1 per cent higher to US$2,162.60.
Markets focus will be on Federal Open Market Committee’s policy statement due at 1800 GMT, followed by Powell’s press conference at 1830 GMT.
The US central bank is expected to hold rates steady, but traders are awaiting its economic and interest rate projections for the rest of the year.
Last week’s US consumer prices index and producer price index figures came in hotter then expected, reducing hopes around early Fed rate cuts.
Traders are currently pricing in an about 61 per cent chance of a rate cut from the Fed in June, according to the CME FedWatch Tool. Lower interest rates also cut the opportunity cost of holding non-yielding bullion.
The US dollar held steady after hitting more than a two-week high in the previous session. A stronger US dollar makes gold more expensive for other currency holders.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.48 per cent to 837.35 tonnes on Tuesday from 833.32 tonnes in the prior session.
Swiss gold exports in February fell month-on-month, coming off an eight-year high that was powered by demand ahead of China’s Chinese New Year holiday, customs data showed on Tuesday.
Spot silver gained 0.1 per cent to US$24.94 per ounce, platinum fell 0.3 per cent to US$891.50 and palladium rose 0.1 per cent to US$991.43. REUTERS
