Gold was steady on Tuesday, although prices moved in a tight range as traders awaited US inflation data due later in the day and the Federal Reserve’s policy decision amid expectations of a pause in the central bank’s rate hike trajectory.
Spot gold held its ground at $1,956.30 per ounce. US gold futures held steady at $1,970.80.
“The market is waiting for the US CPI and FOMC meeting to provide a clearer direction on gold price. (However) there is a lack of catalyst for gold to outperform other asset classes regardless of US Fed policy decision making,” said Michael Langford, director at corporate advisory firm AirGuide.
The consumer price index for May is expected to show a slowing rise in inflation on a year-over-year basis to 4.1 percent from the April reading of 4.9 percent, according to economists polled by Reuters, with a monthly increase of 0.2 percent, down from a 0.4 percent rise the prior month.
