By Sherin Elizabeth Varghese
(Reuters) – Gold prices were stuck in a relatively tight range on Wednesday as traders turned their attention to remarks from U.S. Federal Reserve officials through the week that may provide more clues on the interest-rate path this year.
Spot gold was little changed at $2,032.49 per ounce, as of 1213 GMT. U.S. gold futures fell 0.1% to $2,048.50 per ounce.
“I expect prices to still range trade in the short term. Ongoing strong demand from central banks, with China just buying another 10 metric tons in January, is likely to provide a floor for gold,” UBS analyst Giovanni Staunovo said.
“Market participants will closely track remarks from FOMC members today, of any indication of different comments following the recent US economic data releases.”
A string of Fed officials are due to speak this week, but the focus is likely to shift later to next week’s inflation report for further clues on the timing of rate cuts.
Two Fed officials said on Tuesday if the U.S. economy performs as expected, it could open the door to rate cuts. But the fight against inflation is “not done yet.”.
Strong U.S. economic data and hawkish remarks from Fed Chair Jerome Powell have dashed hopes for a rate cut in March and triggered traders to cut back bets of a May U.S. rate cut.
Traders now expect about a 66% chance of a U.S. rate cut in May, according to the CME Fed Watch Tool.
Lower interest rates boost non-yielding bullion’s appeal.
Spot silver fell 0.6% to $22.27 per ounce, palladium was down 1.6% to $935.16 and platinum lost 1.3% to $892.37.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Arun Koyyur and Jane Merriman)
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