Gold prices ticked up on Tuesday, helped by a softer dollar, while market participants awaited more clarity on the U.S. Federal Reserve’s rate hike stance
Spot gold was up 0.3% to $1,745.22 per ounce as of 0251 GMT. U.S. gold futures rose 0.3% to $1,745.40
Bullion prices fell about 1% in the previous session after hawkish comments from U.S. Federal Reserve officials. Fed Presidents James Bullard and John Williams said there was a long way to go to fight inflation
“Gold is seeing a corrective rise after the preceding session. Also, the dollar is slightly lower,” said DailyFX currency strategist Ilya Spivak
The dollar index inched 0.2% lower. A weaker greenback makes gold cheaper for overseas buyers. Gold is also sensitive to rising interest rates as they increase the opportunity cost of holding the non-yielding asset
Investors’ focus will now squarely be on Fed Chair Jerome Powell, who is due to speak at a Brookings Institution event on Wednesday
“If Powell’s speech strikes a tone that the market reads as not pushing the hawkish ball forward, then gold will have a bounce,” said Spivak
The ADP National Employment report and the U.S. Labor Department’s non-farm payroll data are also due this week. The data could provide some further clues on the Fed’s policy plan
“Investors will now turn attention to U.S. economic data this week for any signs the Fed may ease its aggressive rate hikes,” ANZ said in a note
Spot silver gained 0.9% to $21.10, platinum rose 0.9% to $997.25 and palladium was up 0.7% to $1,857.00
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