BENGALURU- Gold prices rose slightly on Wednesday helped by lower Treasury yields, but were stuck in a tight range as investors waited for more US data to gauge the Federal Reserve’s next step on monetary policy.
Spot gold was up 0.3 percent at $2,334.81 per ounce, as of 0312 GMT, trading in a narrow $11 range after prices fell 1 percent in the previous session.
US gold futures rose 0.3 percent to $2,354.50.
Benchmark 10-year Treasury yields lingered near their lowest level in almost three weeks hit on Tuesday, making bullion more attractive to investors.
“The key event is the ISM services report… the ideal scenario for gold bulls is to see the ISM services remain just below 50 level, with the prices paid component expanding at a slower pace — as this satisfies the ‘soft landing’ scenario the Fed are aiming for,” said City Index senior analyst Matt Simpson.
Markets are also awaiting the ADP employment report on Wednesday and the non-farm payrolls data on Friday for further clues about the health of the US economy and if it will deter the Fed from cutting rates in September.
Higher interest rates increase the opportunity cost of holding the non-yielding asset.
