(Reuters) – Gold held steady on Wednesday ahead of the release of the U.S. Federal Reserve’s latest monetary policy meeting minutes and other economic data, with a firmer dollar keeping prices in check.
FUNDAMENTALS
* Spot gold held steady at $1,926.52 per ounce by 0034 GMT, while U.S. gold futures rose 0.3% to $1,934.30.
* The dollar index held firm, making bullion less attractive for overseas buyers. [USD/]
* Investors will look out for minutes of the June 13-14 FOMC meeting when the central bank held rates steady at 5%-5.25% and signalled the need to deliver at least two more quarter-point interest rate hikes before the end of the year.
* High interest rates discourage investing in non-yielding gold, which is otherwise seen as a safe investment amid economic uncertainties.
* The world’s major central banks delivered the biggest number of monthly interest rate hikes year-to-date in June, surprising markets and flagging more tightening ahead as policy makers grapple to get the upper hand in the battle against inflation.
* The most important Asian economic indicator from a packed calendar on Wednesday will be China’s services purchasing managers index report for June, which comes amid the latest ratcheting up of U.S.-Sino tensions.
* Companies caught out by China’s decision to restrict exports of two metals widely used in semiconductors and electric vehicles were racing to secure supplies on Tuesday as some industry suppliers worried curbs on rare earth exports could follow.
* Spot silver rose 0.2% to $22.9876 per ounce, platinum climbed 0.3% to $917.71 and palladium added 0.7% to $1,251.94.
DATA/EVENTS (GMT)
0145 China Caixin Services PMI June
0750 France S&P Global Serv PMI June
0800 EU S&P Global Comp Final PMI June
0830 UK Composite PMI Final June
1400 US Factory Orders MM May
1800 US Federal Open Market Committee issues
minutes from its meeting of June 13-14
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Krishna Chandra Eluri)
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