Gold prices remained stuck in a narrow range on Friday as the dollar remained under pressure after minutes of the US Federal Reserve's meeting revealed that some policymakers were concerned about lower inflation. Spot gold was nearly unchanged at $1,291.06 per ounce, as of 0748 GMT. Bullion was down about 0.3 percent for the week.
US gold futures for December delivery dipped 0.1 percent to $1,290.70. "Investor appetite (for gold) is low even after slightly more dovish-than-expected Fed minutes. There just has not been enough to entice investors back into the market in great amounts," ANZ analyst Daniel Hynes said.
"Investors are still a bit cautious even though the December rate hike is well expected. They aren't willing to put any aggressive decisions in place before that hike comes through," he added. Many Fed policymakers expect interest rates to be raised in the "near term," according to the minutes of the US central bank's last policy meeting released on Wednesday.
However, some members expressed concern over the inflation outlook and emphasized they would be looking at upcoming economic data before deciding the timing of future rate rises. Spot gold has aborted a bearish target at $1,283 per ounce as it seems to have found a support at $1,288 and is biased to break above a resistance at $1,296, according to Reuters technical analyst Wang Tao.
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