BENGALURU: Gold edged lower on Monday due to an uptick in the dollar, although prices were stuck in a tight range as investors looked forward to US inflation data and comments from Federal Reserve officials this week. Spot gold was down 0.2% at $2,021.13 per ounce, oscillating in a $5 range, at 1219 GMT. US gold futures also fell 0.2% to $2,035.60 per ounce.
The dollar index was up 0.1%, making greenback-priced bullion less appealing for other currency holders.
“Gold has seen relatively muted price action in recent sessions, as markets continue to yearn for greater clarity on Fed rate cuts,” said Han Tan, chief market analyst at Exinity Group.
“Higher-than-expected CPI data may prompt spot gold to test the psychological $2k mark for immediate support. Spot gold may push above its 50-day moving average if shown lower-than-expected CPI prints that help restore expectations for Fed rate cuts.”
The Reuters poll for US January CPI projects a 0.2% monthly rise, down from 0.3% in December, which could fuel expectations of a Fed rate cut in May. Core CPI is expected up 0.3%, unchanged from December.
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