NEW YORK: Gold was little changed on Tuesday with a slightly higher dollar keeping prices in check, while investors looked toward upcoming economic data to provide direction and help gauge the Federal Reserve’s rate-hike policy plans.
Federal Reserve Chair Jerome Powell will address an event hosted by the Economic Club of Washington at 12:40 p.m. ET (1740 GMT) on Tuesday.
Spot gold was steady at $1,867.45 per ounce by 10:13 a.m. ET (1513 GMT) after hitting its lowest level since Jan. 6 on Monday.
US gold futures rose 0.2% to $1,883.20.
“We may go a little bit higher but ultimately I think that we are due for more of a correction and this (rise) is just a pause,” said Daniel Pavilonis, senior market strategist at RJO Futures.
The dollar inched up 0.3%, making gold less attractive to holders of foreign currencies.
Minneapolis Fed President Neel Kashkari on Tuesday said that the US central bank would perhaps have raise interest rates to at least 5.4% to tame high inflation, yet the strength of the US labour market makes it less likely that the economy will fall into a recession.
With Fed officials John Williams, Michael Barr, and Christopher Waller due to speak during the week, “(they) are going to talk about having to continue to fight inflation, which would strengthen yields,” added Pavilonis.
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