BENGALURU- Gold prices flitted within a narrow range on Wednesday as investors awaited key US inflation data for insights into the potential scale of a Federal Reserve rate cut next month.
Spot gold was steady at $2,635.56 per ounce moving largely within a slim $9 range during the session. Bullion hit over one-week low on Tuesday.
US gold futures rose 0.6 percent to $2,635.80.
“There’s the geopolitical element to all of this, which is to say that some selling pressure has emerged because of the ceasefire agreement with Israel and Lebanon,” said Kyle Rodda, financial market analyst at Capital.com.
Gold is traditionally considered a safe-haven investment during periods of economic and geopolitical uncertainty, including trade wars and other conflicts.
“In the long run, I think Trump’s trade-war may be positive for gold because of higher debt loads and a touch of dedollarisation,” Rodda added.
Investors digested a handful of economic data on Tuesday indicating the economy remained on solid footing. Federal Reserve officials were divided on further rate cuts at their meeting earlier this month but agreed to limit guidance on the future direction of US monetary policy.
