Washington, DC, April 18 (BNA) Gold prices rose after two sessions of losses as the dollar weakened, while investors sought more clarity on the US Federal Reserve’s monetary policy stance.
Spot gold was up 0.2% at $2,001.09 an ounce, as of 0457 GMT. And US gold futures rose 0.2 percent to 2011.10 dollars.
“Given the sharp moves of late and little first-level economic data to guide this week, we expect gold to consolidate in the $1980-$2020 range,” said Christopher Wong, strategist at OCBC FX, according to Reuters.
The US Dollar Index fell 0.1% and made bullion cheaper for overseas buyers.
Gold prices fell to a two-week low on Monday after data showed manufacturing activity increased in New York state for the first time in five months, and confidence among U.S. homebuilders improved for the fourth consecutive month in April. The data added to bets for the Fed to raise interest rates at its May meeting.
The CME FedWatch tool shows that markets are pricing an 86.7% chance of a 25 basis point hike in May.
Gold is a hedge against inflation and economic uncertainties, but rising interest rates reduce the attractiveness of non-yielding bullion.
The focus will now be on comments from Fed officials this week before they enter a blackout period from April 22, ahead of the May 2-3 central bank meeting.
Spot silver prices fell 0.4 percent to $25.02 an ounce, platinum fell 0.1 percent to $1046.55, and palladium fell 0.2 percent to $1562.26.
WWA