NEW YORK: Gold stalled near a three-month peak on Wednesday, buoyed by a softer dollar, while the market focus shifted from global tensions to the Federal Reserve’s interest rate strategy.
Spot gold was steady at $1,777.76 per ounce by 11:27 a.m. ET (1627 GMT), while US gold futures rose 0.3% to $1,781.30.
News that stoked geopolitical tensions had a limited impact on gold, Daniel Ghali, commodity strategist at TD Securities, said, adding there would be a lull until fresh information on US inflation.
Bullion held near peaks hit on Tuesday that were the highest since Aug. 15, following reports of a missile killing two people in Poland near the border with Ukraine.
It gave up some of its gains after US President Joe Biden said the weapon may not have been fired from Russia, easing concerns of a major escalation.
The cooling tensions also curbed appetite for gold’s rival safe-haven the dollar, but that in turn made bullion cheaper for overseas buyers.
Gold also got a lift as benchmark 10-year yields were near their lowest since Oct. 5.
Traders took stock of data showing US retail sales increased more than expected in October, while data on Tuesday showed a smaller than expected increase in US producer prices in October that had raised hopes the Fed could slow rate hikes.
Rising rates reduce the appeal of non-yielding bullion.
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