Gold steadies as traders look for clear policy signals

Gold prices were stabilizing on Tuesday, after falling more than 1% in the last session as the dollar halted its rally, but remained in a relatively tight range as traders waited for more monetary policy signals ahead. part of the Federal Reserve.

At 0950 GMT, spot gold was up 0.2% at $1,771.85 an ounce, and US gold futures were up 0.2% at $1,784.20.

Better-than-expected US service industry data spooked investors on Monday, offering further evidence of underlying economic momentum and raising fears the Fed may sustain aggressive rate hikes for longer.

Bullion fell from five-month highs to close 1.6% lower on the day before, as the dollar rallied after data sparked speculation the Fed may raise rates more than recently forecast.

“The movement of yields and the dollar remain the key drivers of gold prices, with the main support near the $1.725 area.said Michael Hewson, chief market analyst at CMC Markets.

“With the Fed meeting next week, the direction of prices will likely depend on how the US central bank sees the path of future rate hikes.”, he added.

Gold’s stabilization was being helped by the dollar index, which appeared to be stagnating after posting its biggest gain in two weeks on Monday. A stronger dollar makes the gold metal less attractive to foreign investors.

In other precious metals, spot silver was up 0.9% at $22.43 an ounce; platinum was down 0.5% at $993; and palladium was down 0.3% at $1,870.89.

With information from Reuters