Gold little changed as markets await US Fed meeting
- Silver rose 0.1% to $27.85 per ounce, palladium was steady at $2,751.68, while platinum gained 0.2% to $1,166.93.
Gold prices steadied on Tuesday, after falling to a near one-month low in the previous session, as investors awaited the US Federal Reserve meeting for further clarity on rising inflation and monetary policy going forward.
FUNDAMENTALS
Spot gold was flat at $1,866.15 per ounce, as of 0052 GMT, after falling to its lowest since May 17 at $1,843.99 on Monday.
US gold futures edged 0.1% to $1,868.40 per ounce.
The dollar hovered below a one-month high versus major peers, making gold less appealing for holders of other currencies.
Benchmark US 10-year Treasury yields slipped below 1.50% to hover near a three-month low. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.
Investors now await the Wednesday outcome of the Fed's two-day policy meeting. Nearly 60% of economists in a Reuters poll said a much-anticipated taper announcement will come in the next quarter, despite a patchy recovery in the job market.
Recent data showing a spike in US consumer prices has benefited gold as it is seen as a hedge against inflation. But, rising inflation concerns could also force policymakers into an earlier tapering of currency-depreciating stimulus.
For the second time in less than a decade, the Fed is getting ready to launch a thorny debate over how and when to sunset a massive asset-purchase program that helped cushion an economy battered by the crisis.
Silver rose 0.1% to $27.85 per ounce, palladium was steady at $2,751.68, while platinum gained 0.2% to $1,166.93.
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