NEW YORK: Gold steadied into a tight range on Monday as an easing dollar and economic worries countered concerns around aggressive monetary tightening by the US Federal Reserve, with the focus on several central bankers’ views this week.
Spot gold was little changed in holiday-thinned trading at $1,837.46 per ounce by 1436 GMT. US gold futures were unchanged at $1,840.20.
The dollar index eased from near its highest level in about two decades, rekindling some demand for bullion among overseas buyers.
“The precious metal is likely to remain within a range, thanks to the conflicting forces empowering both bulls and bears. A fresh catalyst could be needed to tip the balance of power,” said FXTM senior analyst Lukman Otunga.
Gains were capped by hawkish comments from Fed Governor Christopher Waller over the weekend, Otunga added.
Waller on Saturday became the latest US central banker to pledge a whatever-it-takes approach to fight inflation, days after the Fed raised interest rates by three-quarters of a percentage point and signalled more hikes to come.
“It’s a public holiday in the US, which means liquidity – and therefore volatility – is likely to be lower, thus making directional moves on gold difficult without a fresh catalyst,” City Index senior market analyst Matt Simpson said.
A host of central bankers will be speaking this week, led by a likely hawkish testimony from Fed Chair Jerome Powell’s to the House on Wednesday and Thursday.
High interest rates increase the opportunity cost of holding the non-yielding bullion.
Spot silver fell 0.4% to $21.57 per ounce, while platinum rose 0.1% to $933.58. Palladium gained 2.2% to $1,855.11.
Commerzbank lowered its end-year platinum price forecast to $1,050 an ounce from $1,100 on expectations of a supply surplus. Palladium meanwhile, could recover in coming months as problems in the auto industry gradually ease, with prices hitting $2,100 by year-end, it added.
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