Gold prices were subdued on Tuesday as the dollar and Treasury yields rose, while traders waited to hear from a slew of US Federal Reserve speakers this week for more clarity on the central bank’s rate cut prospects.
Spot gold was down 0.3 percent at $2,049.20 per ounce. US gold futures rose 0.1 percent to $2,052.90.
Weighing on gold, the dollar has strengthened ahead of Christopher Waller’s speech, which is arguably the bigger event for the week, said Matt Simpson, a senior analyst at City Index.
The dollar index touched a 10-day high, making bullion less attractive for other currency holders, while yields on benchmark US 10-year Treasury notes rose above 4 percent .
At least six Fed officials are due to speak this week, with Fed Governor Christopher Waller scheduled to deliver a speech on the economic outlook before the Brookings Institution.
“With multiple rate cuts having been priced in by market, I wouldn’t be surprised if Waller feels inclined to push back…a move back to $2035 (for spot gold) could be plausible,” Simpson said.
At the end of its Jan. 30-31 meeting, the Fed is expected to hold its policy rate steady.
