Gold steady

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Gold prices crept higher on Wednesday but were stuck in a narrow range as investors looked to US economic data for further clarity on the Federal Reserve’s interest rate path.

Spot gold rose 0.2 percent to $2,327.86 per ounce, after having hit its lowest since April 5 in the previous session. US gold futures were steady at $2,340.90.

“A false break of $2,300 on Tuesday likely means that gold prices will remain rangebound heading into US inflation data and the BOJ meeting… I expect gold to tread water between $2,300 and $2,350 unless a fresh catalyst arrives,” City Index senior analyst Matt Simpson said.

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This week, investor focus will be on the US gross domestic product (GDP) data due on Thursday and the Personal Consumption Expenditures (PCE) report due on Friday.

Resilient US economic data suggests any surprises are likely to be on the upside, potentially lifting the dollar and US yields further, Simpson noted.

A stronger greenback and elevated bond yields make the dollar-priced bullion less attractive for other currency holders and as an investment option compared to debt.

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