Gold Prices Trade in Tight Range as Investors Wait for US Inflation Data.

The gold prices They were trading little changed on Wednesday as a drop in US Treasury yields in the face of what is expected to be robust inflation data in the country kept bullion investors on edge.

At 0957 GMT, spot gold was up 0.1% at $1,827.20 an ounce, trading within a tight $5 range. U.S. gold futures were trading steady at $1,828. .40.

Spot gold prices are attempting to return to the $1,830 resistance sector, which has repelled bullion’s rallies multiple times since July 2021, Extinity analyst Han Tan said.

“Prices must also grapple with the implications of US inflation figures to be released on Thursday, so further evidence of lingering inflationary pressures leading the Fed to a more aggressive policy stance could lessen the precious metal’s appeal.”, he added.

Analysts expect gold prices to remain largely around current levels until the release of US CPI figures for January, which could offer more clues about the pace of US interest rate hikes. the fed

While a strong inflation reading is expected to increase gold’s appeal as an inflation hedge, US interest rate hikes would raise its opportunity cost as it does not pay interest.

Benchmark 10-year U.S. Treasury yields fell from a November 2019 high hit last session, while the dollar was little changed but far from Friday’s low.

Among other precious metals, silver rose 0.1% to $23.19 an ounce, after hitting a high not seen since Jan. 27. Platinum was up 0.1% at $1,032.88 and palladium was down 0.3% at $2,240.53.

With information from Reuters.