Gold prices were stuck in a tight range on Wednesday as investors refrained from making big bets ahead of the U.S. Federal Reserve‘s policy decision and remarks from Fed Chair Jerome Powell later in the day. FUNDAMENTALS
* Spot gold was up 0.1% at $2,159.50 per ounce, as of 0123 GMT. U.S. gold futures also edged 0.1% higher to $2,162.60.
* Markets focus will be on Federal Open Market Committee’s policy statement due at 1800 GMT, followed by Powell’s press conference at 1830 GMT.
* The U.S. central bank is expected to hold rates steady, but traders are awaiting its economic and interest rate projections for the rest of the year.
* Last week’s U.S. consumer prices index and producer price index figures came in hotter then expected, reducing hopes around early Fed rate cuts.
* Traders are currently pricing in an about 61% chance of a rate cut from the Fed in June, according to the CME FedWatch Tool. Lower interest rates also cut the opportunity cost of holding non-yielding bullion. * The dollar held steady after hitting more than two-week high in the previous session. A stronger dollar makes gold more expensive for other currency holders. * SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.48% to 837.35 tons on Tuesday from 833.32 tons in the prior session.
* Swiss gold exports in February fell month-on-month, coming off an eight-year high that was powered by demand ahead of China’s Lunar New Year holiday, customs data showed on Tuesday.
* Spot silver gained 0.1% to $24.94 per ounce, platinum fell 0.3% to $891.50 and palladium rose 0.1% to $991.43.