Gold steady as market awaits Fed policy cues

Still, Federal Reserve fund futures were up again, showing a 75% chance of a rate rise in early June and deterring investors from pushing gold higher until further word from the Fed on the likely trajectory for rate increases this year.

"Fundamentally, we remain bearish on the yellow metal, underpinned by two more rate hikes by the USA central bank in 2017". Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures will rise.

USA gold futures dipped 0.1 percent to $1,259.70 an ounce.

Spot gold was almost unchanged at $1,254.75 per ounce, as of 0755 GMT, after edging down earlier in the session. "I think it is a good thing because it takes sometime for the central bank and the market to build up some sort of consensus upon which we can have some stability".

Last week, gold prices were higher on Friday and notched the largest weekly gain since mid-April as political uncertainty surrounding the Trump administration pressured the dollar lower, boosting demand for the precious metal. United States interest rate hike next month is a "distinct possibility", the head of the Federal Reserve Bank of Philadelphia, Patrick Harker, said on Tuesday, adding that another disappointing reading on monthly inflation could cause the U.S. central bank to hold back. "Any combination of the above is most likely bullish for the U.S. dollar, especially as post a June hike, the market has not priced this possibility in on its forward indicators".

Spot gold is expected to retrace to support at $1,245 per ounce, as it failed to break resistance at $1,257, said Reuters technical analyst Wang Tao.

Silver futures jumped 0.393 dollar or 2.34 percent to close at USD 17.16 per troy ounce at the COMEX.

Platinum was up 0.7% at $952.60 an ounce, having earlier hit its highest in more than three weeks.

Palladium slipped 0.2 percent to $768.98 per ounce.

  • Zachary Reyes